Action Step #3

Reduce, or Get Out of Debt!

You can either earn interest or pay interest. If you are paying interest rates higher than 9% you are making someone else wealthy. Getting out of debt will give you the ability to earn interest and use compound interest to grow your net worth.

• List your debts from the smallest amount to the highest.
• Credit card #1 $200.00 payment $15.00
• Credit card #2 $500.00 payment $35.00
• Dept. Store Card $700.00 payment $50.00
• Car loan $15,000.00 payment $300.00
• Home Equity $25,000.00 payment $200.00

Pay off the first loan and then apply the payment from the first loan to the second. Once you have paid off the second loan, use the payment from the first and second loan toward the third. Keep using the payments of the paid off loans to the next loan and watch your debt melt away.

This debt reduction systems has been used by many American consumers to take control of their finances.

This strategy works!