1. Know Your Numbers

In order to become debt free, you must know your numbers.

Write down every single company and person you owe. Do not include utilities unless they are overdue. This is the total you will use to track your progress until your become debt free.

*Note : Your mortgage should be excluded from this list*

Here is an example below:

DETAILS RATE BALANCE MIN PAYMENT
Debt A20%$2,000.00$100.00
Debt B22%$5,000.00$200.00
Debt C8%$27,000.00$350.00
Debt D10%$35,000.00$480.00

2. Choose a Debt Reduction Strategy

Use the below explanations to determine the best possible debt reduction method for your financial situation.

To be successful you must have a plan of attack

@debtfreecaribbean

3. Create A Budget

A key element to successfully clearing debt is budgeting the write way. Let’s be honest though, budgeting can be frustrating and it takes time and consistency to be perfect.

A budget must be realistic in order to work. Writing down numbers is simple but your numbers should resemble your actual life.

Action Steps to Take

  • INCOME: Make a list of all income for that period – day job, side job, sale of items etc
  • FIXED EXPENSES: These are your regular recurring expenses that rarely change such as rent, mortgage, minimum debt payments, insurance premiums etc
  • VARIABLE EXPENSES: These expenses vary from month to month such as gas, fun money/eating out, supermarket etc

Don’t be discouraged if you don’t get your budget right initially . It will take some time to find the numbers that work for you

@debtfreecaribbean