The absolute best reason for eliminating your debt is because with zero debt your money worries are rare.

Without debt strangling your every move, decisions are easier to make.    If you are debt free, you can avoid making a 401k early withdrawal or a 401k hardship withdrawal when a crisis arises. You should not tap your 401k funds for everyday spending anyway – those funds are earmarked for your retirement years, not for current spending needs.

But when you run into an emergency and you are tapped out on your credit, you are over your head in debt, you may have a tendency to tap into your retirement savings.

Eliminating your debt is the healthiest move you could make, life is a lot less stressful if you have zero debt.   There are ways to get you out of debt, let’s explore those:

The Elimination Of Your Debt:

1st – Eliminating debt sounds wonderful, but is it attainable?

  • Yes, it is attainable!
  • You just need discipline and commitment!
  • You do not need to be born wealthy or win the lottery to enjoy a life free from debt.
  • You do need to live below your means.
  • You do need to spend less than you earn.
  • You do need good saving habits.
  • You do need good spending habits.

Guide to Eliminating Debt2nd – Your Debt Load

  • Evaluate your current financial situation.
  • How much debt do you have?
  • Where is the debt? loans? credit cards?
  • Work on changing your spending habits to lighten the debt load.
  • Develop the discipline to make any necessary changes to your current spending and saving habits.
  • Teach all members of your household to have the same commitment as you.

 3rd – Credit

  • How many outstanding credit cards do you have?
  • Consolidate your credit cards, stop using all of your credit cards.
  • With less use of credit cards, there is less of a chance to build up debt.
  • Use your credit cards sparingly.
  • Only use your credit card in a true emergency.
  • Pay off your outstanding credit card balances.
  • Work with your creditors to get caught up on any current debt.
  • Work on paying all of your bills on time.

 4th – Budget

  • Track your expenses so that you know exactly where you are spending your money.
  • Set a budget and stick to it without fail.
  • Set financial spending goals and stay committed to them.
  • Prioritize your spending – if you do not need something – do not buy it.
  • Set saving goals; it’s not what you make but what you keep that counts.

Committing to a debt free life style is worth the discipline. When you are debt free you have financial control.   Financial control will give you  financial security.   When you have no debt and you are in control, life becomes a lot less stressful.  Striving for zero debt is a goal worth achieving. Start today, change your spending and saving habits, work with your creditors, start a budget….take control of your financial life.