Your Debt Free Plan for the New Year |
Unmanaged spending using credit cards are the number one root cause that drives most people into credit card debt. If you are currently in debt and thinking of having a debt-free life shortly, you need to start to look into your debt seriously; steering clear of unwanted debt is a great way to manage your finances and relieve the stress caused by debt. Here are some debt-free steps which you can put in place as your New Year's plan:
1. Change Your Spending Behavior
You cannot become debt-free if you spend more than you earn. It's that simple! Financial stress relief is called "money in the bank" or "positive cash flow." You need to know where your money goes; this can be done by listing your regular and non-regular expenses. Think twice about any item you plan to buy; ask yourself whether it is a need or an optional item.