Starting a Plan for Debt Reduction

Are you on the right path? Do you have a detailed plan to strategize your debt elimination? Whatever the strategy is, anyone can pay off debt and live debt-free if they are dedicated to their goal and agree to change lifestyle habits. To become debt-free, there are basic steps that should be taken: • Stop acquiring new debt and cut up all existing credit cards. • Agree to a lifestyle change of not spending just to spend; not spending on impulse; analyzing spending patterns and determining what is a "want" and what is a "needs". (We really do not "need" Starbucks or Dunkin' Donuts coffee. This is a want. A generic Folgers coffee at home would be a more feasible option). • Establish a $1,000 emergency fund (if you are unemployed, try to obtain a $500 emergency fund, if possible). • Attack existing debt and pay it off. If someone continues to spend what they do not have, they will most likely never achieve the debt-free goals they have set for themselves. What does your plan look like? Are you ready for a new you?