Debt: Steps on the Journey out of Bondage
Digging yourself out of debt is no easy feat. I myself have been trying for years. There has been times of great success and times of set backs. Along my journey I have littered the path behind me with books and blog articles. I like to think that I have gained some good knowledge on the topic of debt reduction. I don’t know everything, but what I know I want to share.
Part One: Identify the problem / Stop the bleeding.
- Is your debt taking over your life? Ask yourself these questions…
Part 2: Emergency Fund - Phase One
- If you have been around the field of personal finance for any amount of time I am sure you know the concept of the emergency fund. If you have an adequate emergency fund you will be covered in case the dryer breaks down, or the car, or -God Forbid- you loose your job. The point of the emergency fund is just that, to care for you in times of emergency.
Part Three: Building a Financial House
- Part three is such an important topic that it really deserves its own series of articles… so here they are.
- Starting a snowball is a method of paying off debts. Starting small leads to big payoffs as the debt reduction snowball rolls down hill… growing bigger as each debt is paid off.
Life from here on
Once you have made it this far it is time to reaffirm your commitment to being debt free. You have a difficult road ahead of you now. Don’t fear! The road has been traveled before. It is rocky, but you can do it.
