In this modern world, practically there are no slaves. But, there are a new trend of slaves. We all are slave to our debts. Until we have not pay out our debts, we are still considered a slave to it. Is it possible for us to roam freely without any debts? Now, that is what I call Independence day in my life. Even millionaires who still owes money to banks are considered as slaves.
I still have debts for my car, housing loan, education loan, credit cards and personal loan. For most of us, mortgage is the biggest figure among all debts. My first step of reducing debts is to reduce the unnecessary expenses. Following by increasing multiple source of income. So, how are we going to pay up our debts faster? Start out with a list of debts from smallest to highest. Pay all debts from top to low. From balance, pay extra on the smallest debts. This allows the smallest debt settled faster. Continue the loop until all debts settled.
I know it sounds so easy to explain it here, but if we don’t do anything of increasing debts, we might end up in bankruptcy. So, do your list today and start your debt elimination program.