If you are struggling with debt, here’s my Fast & Bulletproof Debt Plan
1. If you are in debt right now, are you going backwards (getting worse) or maintaining level?
2. If you are maintaining, then work out how much you pay now per month, say it’s £500 per month.
3. Resolve to pay the minimum of all debts except one, work out how much that would be in total, say £450 a month
4. Pay the difference between the total of all the minimums and what you are paying now, so in this case £50, off the debt with the highest APR. Work that out each month and stick to it.
5. If you are NOT maintaining, and it’s getting worse, it’s because you are not earning enough to cover your outgoings
6. Work out realistically what your (frugal but bearable life) monthly outgoings are as a family, and don’t forget stuff like haircuts and birthdays and clothes.
7. Work out what the difference is between what you earn and what you need as above
8. Work out the FASTEST EASIEST route to make up that difference and more. Rent a room out, start a real world part-time business like gardening, cleaning or babysitting, or start to make an extra income online. Brainstorm as a family how you can ALL make more money. Concentrate on making more money NOT saving money. This is the way to positively spiral your way out of debt and into wealth.
9. Consider working with a debt management company who can take some heat off – the credit cards and banks do bully you something shocking and you’ll be shocked to know they are trained in how to do it. At the very least, tell them you will only communicate with them via letter, change your phone number and don’t give it out or call them from it.
10. If you need help with Point 8 – think about joining my Inner Circle mentoring club and I can help you make a part time (initially) then a full time living online.