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However, there is a way out of debt.
According toDave Ramsey, here are three things to doto be debt-free on a fixed income.
Create a Budget
Figure out how much you owe in debt, then make a monthly budget.
Once you know where you stand, you’re able to start making progress.
Making a budget might seem overwhelming, but Debt.org explained it doesnt have to be complicated.
Think of it as a snapshot of your financial situation.
Have an Emergency Fund
Before paying off debt, Ramsey Solutions advised putting money aside for emergencies.
We call this Baby Step 1 meaning it comes first, before you even start paying off your debt.
Go ahead and save up a cool $1,000 as fast as it’s possible for you to.
Pay as much as possible on the lowest bill, and pay the minimum amount on the others.
This is Baby Step 2 in Dave Ramseysmoney management plan.
When you knock out the smallest debt first, you get motivation, Ramsey Solutions explained.
When you pile that payment onto the next debt, you get momentum.
Motivation plus momentum equals victory.
it’s possible for you to become debt-free.
Will it be easy?
No, it sure wont.
But anything thats worth doing is hardly ever easy.
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