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Is debt about to run you over? What brought you to the realization that your financial picture needs to change? An overdue bill? A late charge on your credit card? Your neighbor pulling into their driveway with a new car? A desire to be at home with your children full time? Many things can precipitate the change, but the important point is that you are trying to change.

Assess the Damage

The first step in any crisis is to assess the damage. For your finances that usually starts with totaling up all the balances on any credit cards, adding any student loans, car loans, home equity loans, even your mortgage etc., basically any debt you’ve accumulated. It can be scary to see the sum total of all that debt! You often experience a sense of discouragement. Things like “How did I let this get so out of control” or “How will I ever get this paid off?” will run through your mind, sending you into a panic.

Ok, Time to Panic

Go set the timer and take a FULL FIVE MINUTES to get really upset about this! Vent your feelings and your frustrations. Even cry if you want, but when the timer rings, take a deep breath, and now another. It is time to just say “CAN’T CHANGE IT” and move on.

Why Did I Just Freak Out?

The reason I want you to do this is that I don’t want you wasting more emotional energy on what happened in the past. You will need that energy to forge ahead eliminating this debt, and that negative energy will just slow your progress.

There, that’s better! You’ve just made it through the toughest first step. You faced your fear! I am so proud of you!

You Are Not Alone!

Did you know that 70% of US households live paycheck to paycheck? This is your chance to break out of that statistic and into prosperity!

The Most Important Step

Now you must commit to:


I am serious!! The following system will not work if you keep accumulating debt! 70% of US households live paycheck to paycheck. This is your chance to break out of that statistic and into prosperity.

The 8th Wonder of the World

Next, I recommend a system that I learned from Dave Ramsey, called the “Debt Snowball”. In this method, all debts are listed from the smallest total balance to the largest total balance. Some people will tell you that you should focus on the highest interest rate first, but if you do it with the smallest balance first, you will gain success by paying off your first debt sooner and having funds to quickly apply to the next debt balance.

Let’s say the first payment that you were attacking was a $50 per month payment. Once that debt is paid off use the money you were paying to add that $50 per month to the next smallest payment in addition to what your regular payment.

See how you will pay it down more quickly with the extra $50? Once it is paid you add the monthly payments of the first two debts to the third debt. Keep up this pattern and when you have paid off several debts, you will have a hefty payment per month going to reduce subsequent debts!

Get your free debt snowball calculator here:

Did you take time just now to put your debts into the calculator to see you long it will take you to pay off your debt? Once you do that you will have a deadline for when you will be debt free! Now I suggest that you write that deadline down as a goal. For example, I will pay off 29,000 in debts by 2020.

Write Down Your Goal

People who write down their goals are 42% more likely to accomplish them!

Put this goal somewhere that you will see it regularly. If you see or review your goals regularly, you will be more likely to accomplish them. Also, think about the reasons why you want to be debt-free. What will you do with the extra money available? Write these reasons on the card as well.

What’s Your Why?

Knowing why you want to be debt free will help you stay motivated to keep paying off debt. Your “why” also calms those cravings to “keep up with the Joneses”. Besides, if you stick to the plan before you know it, you will be the Joneses! Your paydays would be a great time to review this goal! You will be looking at your debt payoff plan anyway.

I have found that once you start the payoff process, you will be probably looking for every possible way to plunk more cash on the debt to cross the finish line earlier than your original goal states.

Secret Force Field

Now that you’re excited to start this journey to be debt-free, I am going to share the “secret force field” which will protect you from grabbing your credit card for your next financial crisis. Trust me, you will definitely want to take care of this step before you start repaying debt.

A Wake-Up Call

Finally, let me ask you this: If you just received a cancer diagnosis, would you think it is wise to ignore it? Or would you think that as bad as it is, you should face it, and do everything possible to cure it?

Right, I thought so.

Well, debt is cancer to your financial health because it steals your future. Your future earnings are paying for things that you barely care about anymore, and you are constantly left with a sinking feeling that you will never accomplish your big dreams.

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