Step one: Know how much you owe and who you owe.
I was talking to a friend of mine not long ago. She was sharing how she would love to pay down her credit card and ask me how did I do it?
My first question was how much do you owe?
She had NO idea! She made the minimum payment every month but have no real idea what she owe.
Ok, I won’t judge too much because that was me. I never knew how much I owe, I didn’t even know who I owe, I was just paying!
It didn’t make any sense. How can you ever get out of debt if you don’t even know the debt?
We had a guest speaker come to our church once and he was speaking on wisdom, he talk about money and lot of other stuff, at the end of the message he gave homework.
Which was great since I’m a major nerd, I love homework. The homework was to call every single creditor and find out how much you owe and if there was a pre-payment penalty.
So simple, but it was a huge step toward my debt free journey!
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