Do you really want to get out of debt? Like really really? It's really easy, if you are committed.
Tip of the day.
Automate debt payments.
Nice and simple.
Work out what your credit card repayment is on average, double it, and set that figure as an automated monthly payment on the day after your salary gets paid into your account.
Once that is settled, take that full repayment, whatever is was and move it to the next debt, like a car repayment.
Set up the automated extra payment for your car and watch the outstanding balance rocket down.
Try aim for double the normal monthly repayment, but if you absolutely can't afford that, go for as much as you can.
The key here is to do it just once.
Once you have transferred that money and you see that you can make it through the month without it, you won't be so scared to load it as an automated payment.
That way you will forget about it until you get that little letter in the post that says your car is now settled and it belongs to you.
What you'll also find is that once you own a car outright and it's been settled in a relatively short period of time, you'll tend to stick with that vehicle for a bit longer than most people would.
The urge to go out and trade it in after 2 years is much less when it actually belongs to you.
I don't know if it is a psychological thing, but I do know that you'll think twice before buying a car on credit again once yours is already paid for.
Now, imagine this scenario - Your car is paid for, you have no credit card debt and your house is paid for.
How would your lifestyle change with all of that extra income freely available for you to do with as you please?Travel overseas, look at investing in other properties, get an expensive hobby like scuba diving or kite surfing and actually be able to afford to go more than once a year...
the possibilities are endless and the only thing holding you back is DEBT.
And yet it's so easy to get out of it.
Just automate those extra payments on the day after your salary gets paid intoyour account so you physically can't spend the money on other rubbish.
Here's another little tip about where to take that extra payment from.
Do you have a fixed deposit at a bank or an endowment policy or a regular investment payment or unit trusts?All of those generally offer returns of between 5 and 8% per year.
Yet your debt is probably costing you anywhere between 8 and 16% per year.
Still think you're saving?Think again.
You can only truly start investing and saving once you are debt free.
Until then, you're just wasting your time with all those so- called investments.