My easy six-step plan to clear debt

1

Stop using credit – it only makes things worse. Change your spending habits and set up my Bank Account System, which automates your finances and encourages easy-to-follow boundaries on your discretionary spending. 2 Keep your credit card debts separate. Don’t consolidate them, but instead ensure you’ve got the lowest interest rates possible, especially on your larger balances. 3

Pay off your balances in order. Start with the smallest and work up to the largest amount.

4

Ensure you always maintain the minimum payment on each debt. 5

Take at least 12.5% of your net income – representing the first working hour of a 9-5 day – and use it to repay your smallest balance. Do this each month until the debt is repaid then close the account, congratulate yourself and move on to the next smallest balance. Repeat. 6

Accelerate the process by selling unwanted items online. Maybe there’s a Christmas gift you don’t really want or you have items you no longer need. Whatever your situation right now, becoming debt-free is possible. It’s done every day by people around the world, so why not you?