I can’t emphasize this enough. If I weren’t already debt free, then my lack of job and the cost of divorce would have me buried completely under.
Everything I ever heard, says do it this way:
Take your smallest debt, pay as much as you can over the minimum payment until it is paid off.
Then, take that same amount and apply it to the next largest debt.
And so on.
That’s it. Simple huh? Now, depending on how deeply you are in debt, it will take some time to be completely debt free, probably years. But start now, and when you are finished you can look back and say “why didn’t I do this sooner”? If you don’t do it, and something catastrophic happens, how do you expect to pay for your car, house, medical bills etc.?
A sub set of getting Debt Free is; Have multiple streams of revenue. There are many paths you can take, and not all may be for you. Decide for yourself what works best for your situation and review for time to time if your current path is working.
Some options for multiple revenue streams:
Stock and bonds
Investing in precious metals (Actually possessing this metal is the only method I would recommend)
Start an on-line business (E-bay/Craigslist)
Buy real-estate for rentals
Start your own home business or two. When I lived in an apartment in Sunnyvale, I started my own dog walking business. I would take my dog Elvis (And if you know me for any length of time you know Elvis. If I went somewhere he could go, he went with me. Walking him at a local park, I would talk to other dog owners from the apartment complex and many would complain about having to come home during lunch to walk their dog. So I began offering Elvis and I as dog walkers. We would go to our clients apartments and I would put there leashes on and walk the dogs for an hour a day. At the height, Elvis and I were going out three times a day and making about $300 a month. Not a lot but it was something I was doing for myself. All I had to do was post a couple of notes in the laundry rooms, and talk to dog owners in the park that I was talking to anyway.
Now, I’m trying to get back to Freelance Graphic Design, and Survival/Preparation consulting.Now, I’m trying to get back to Freelance Graphic Design, and Survival/Preparation consulting. But preferably you want to set up something that will generate income without your input or at least a minimal overview by you.