The Plan

1. Spend less then you earn. I know it sounds simplistic but it’s the first cardinal rule to getting out of debt. You don’t have to make big sacrifices just find different ways to shave your spending and your monthly expenses if a few dollars can make a big difference.
2. Make a budget. It’s not a four letter word and not going to keep you from doing the things that you want. It’s not a restraint it’s a PLAN. You need a budget whether you make thousands or hundreds of thousands. You cannot create a debt elimination plan if you don’t have a budget.
3. Prioritize your debts.
4. Make the bare minimum required monthly payments on all other debts except for the highest priority debt.
5. Add the Margin to the regular payment on the highest priority debt. (Should be at least 10 percent of your take-home monthly income.)
6. Continue doing this each month until that debt is paid off.
7. Then, when that debt is paid off, move on to the second debt on the priority list. You will now have an even bigger Margin than before because you can add in the monthly payment of the paid-off debt.
8. Repeat this process again and again, moving down your debt priority list.
9. On average, people pay off all of their credit cards and cars within the first couple years. After that they are typically able to at least double their monthly mortgage payment. Within four to five years, the mortgage is paid off! It just takes a little DISCIPLINE! Work smarter not harder!