Here is a list of five practical things you must do before starting your path to debt freedom. Increase your chances for success by implementing the following:
1. Get current on all your bills.
Pay any overdue balances and ensure you can make at least the minimum payment on your bills before starting the journey to debt freedom.
2. Save an emergency fund.
Having money set aside provides a safety net so you can avoid going into more debt.
3. Calculate your total debt balance.
If debt freedom is your goal, you must know how much is owed.
4. Create and implement a budget or Financial Spending Plan.
Using this, decide which expenses can be reduced or eliminated. Use discretionary income to help reduce debt.
5. Determine your strategy.
Decide on a debt reduction method for example 'snowball' or 'avalanche'. Once your strategy is determined, it's time to work your plan.
Have you started your debt freedom journey? If so, what did you do to prepare yourself?
Let us know below.