From Debt to Financial Freedom

Debt Free Financial Advice

The first steps on the road from debt to financial freedom are to recognize that you have one or more problems and then seek debt free financial advice.

The obvious problem, of course, is that you are in debt. But do you understand the extent of that problem?

Some people are clueless as to how much total debt they actually have. Rather, they look at what they owe in terms of the minimum payments they need to make each month.

How Big is the Problem That Keeps You from Living Debt Free?

To fully come to grips with the problem, try this:

  1. On a paper or spreadsheet, make 3 columns.
  2. List the name of each credit card or debt in the first column.
  3. List the outstanding balance for each in the second column.
  4. List the monthly amount of interest you are paying for each in the third column.
  5. Total the 2nd and 3rd columns.

The Totals Motivate You to Learn How to Eliminate Debt

What is your total debt? Does that surprise you? How did you get to that point?

Was it because of unforeseen circumstances such as a job loss or medical bills? Or was it because you were living beyond your means? Are you able to distinguish between a need vs. want? Is there anything that you could have done to prevent this?

Next, look at the total monthly interest payments.

What could you do if you had that extra amount of money every month? How might your lifestyle change? What would you be free to do that you can’t do now? Recognize the importance of saving money.

Now that you can see the full extent of the problem, it is time to attack it with a vengeance. Check out specific steps on how to eliminate debt.

Return to Living Debt Free From Debt to Financial Freedom

Return From Debt to Financial Freedom