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How would you like to be debt free? Is it something that sounds good to you or does it sound far off into the future? Well, now is your chance to start living the life of your dreams. If you want to live a debt-free lifestyle, read on to discover the top 7 things you should do before you become completely debt free. The average American household has $16,813 in credit card debt, according to This means that nearly half of Americans owe money on their credit cards. And while some people might say they don’t mind owing money, being able to pay off your debts is important because it can improve your financial health. In addition, having no debt at all can boost your confidence and enhance your self-esteem. There are plenty of ways to get out of debt, but the key is to stop spending beyond your means. By paying down your debt faster and prioritizing your expenses, you’ll be well on your way to becoming debt free.

Pay Off Your Highest Interest Card First                                                                                    debt free

Your highest interest rate can often be found in one of your credit card statements. It makes sense to tackle this first, as the high-interest rates will deplete your savings much quicker than if you paid off your lowest-interest credit card balances first. Keep track of how much you’re spending each month and prioritize which card has the highest monthly fee.

Cut Unnecessary Expenses

First, determine what you truly need versus what you desire. Then cut those expenses from your budget accordingly. For example, if you spend $200 per week on eating out at restaurants (which is more than most people), over for other necessities such as groceries and gas.

Set Up an Automated Savings Plan

If you have the ability, to automate your savings so that you never miss saving again. Many banks offer automatic transfer programs that allow you to set up a direct deposit from your paycheck without any additional fees. Other methods include using online bill payment services to pay bills automatically.

Start Small

When starting with debt reduction, focus on just one step at a time. One common mistake made by many debtors is trying to take on too much at once. Instead, use smaller goals to help keep you motivated. These small steps will add up quickly in helping you achieve your larger goal.

Utilize Credit Cards Wisely

Most people then eliminate these dining habits until they get out of debt. Of course, make sure you have enough left after paying off your other debt for normal expenditures. A credit card with a 0% APR usually doesn’t give you any kind of benefit. The only advantage of them is that there’s very little risk involved. However, if you carry a balance and aren’t paying it off on time, it could hurt your score. It also won’t show up on your credit report unless you carry a balance. So, when applying for new credit, try not to open any new accounts.

Look Into Consolidating Debt You may be able to save money by consolidating your debts. Consolidation involves taking multiple loans and combining them into one loan. Some consolidation lenders even offer zero per cent APR. Check out your local credit union or bank to see if you qualify.

Make Use of Government Assistance Programs

If you’re unemployed or underemployed, you may qualify for government assistance programs like the federal Housing Choice Voucher Program. Even if you don’t meet the income requirements for the program, you still may receive rental assistance through the Low Income Home Energy Assistance Program. Contact your state agency to find out more about available resources.

Get Rid of Bad Debts

As long as you have equity in your home, you should consider refinancing your mortgage to reduce its size. That way, you can apply for lower interest rates and pay less toward your house every month. Once you’ve cleared that item off your list, move on to the next bad debt.

Don’t Let Your Debt Go Too Long

Once you start making progress towards your financial goal, it’s important to stay focused. Take the time to stick with your plan even when things get tough. This will provide you with motivation and determination to continue working hard toward reaching your ultimate goal.

The Bottom Line.

We all want to live comfortably. We want to enjoy life while we’re living it. But how do we accomplish this? There is no simple answer. However the simplest we can do that is by investing in online casinos.

Things You Should Do When You are Debt Free