Part three of an ongoing ditch-your-debt series.
It’s a lot more fun—and efficient—to demolish your debt in big, satisfying chunks.
So instead of tightening your belt one small notch at a time, identify one or two big sources of savings and kick your debt payback into high gear.
Examples: Give up a car instead of your daily latte. Slash a $300-a-month vice instead of six minor expenses.
Assuming you’ve already read the chapters on living the debt-free life and how saving can save you, make your next move a biggie. Here's how:
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List your $200-plus expenses: car payments; gas or commuting costs; rent or mortgage; day care/babysitting; the cable-TV-internet humdinger. |
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Identify pricey habits and what they cost you: new gadgets; eating out; alcohol; smoking, etc. (Hint, if you don’t know your top money wasters, track them on Mint.com.) |
Then, brainstorm creative ways to slice one big spender out of your budget so you can put that money toward debt. The payoff is huge:
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If you have... $8,500 @ 14% |
And you're paying... $150/month |
You'll be debt-free... 8 years |
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$8,500 @ 14% |
$300/month |
3 Years |
Drop it. What killer expense did you dump to get out of debt?
