Lesson 6: In our ongoing Wealth Wisdom video series, we’ll teach you financial fundamentals. In this sixth lesson, Bill Ray, a financial services expert with over 30 years experience, will teach you how to build savings and control your spending:
Here are the steps to pay off debt described in the video:
- The first step is to make a budget. Savings = Net Income – Expenses
- Next, call the people you owe money to and try to restructure the rate and the terms to a better position for you.
- Don’t involve yourself with a company who says they can immediately eliminate all your debt without any hassles. It may not be ethical.
- The next step is to pick either your lowest bill, or your highest bill, and pay 10% more on that bill each month until its paid off.
- Take the payments you were making on that bill, and apply them to the next bill on your list.
- Repeat until all your debt is gone.
- If you line up all your bills and pay them off systematically, you can be completely debt free in under 7 years.
Learn More: This is a great and simple method for paying off your debts. If you want more information, visit our How To Pay Off Credit Card Debt section.
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