What is Meant By Financial Freedom?
In the 21st century the concepts of time and money are being redefined. ”Financial Freedom”, is one such term that has gained much importance in the changing financial scenario.
”Financial Freedom” means the freedom from continuous financial responsibilities through a planned management and allocation of assets. It frees a person from back-breaking work by giving him a steady source of income for life.
One must not think that a financially free person is also debt free. However, his prudent asset management ensures that his debts do not become a burden but only a part of his over-all expenses. In this way, his debts do not hinder his long term financial goals.
Financial freedom cannot be equated with being rich. One must not forget that surplus wealth requires constant supervision. In the long run, a rich man’s obligations do not make him ”financially free” in the true sense.
Thus, financial freedom maybe defined as a lifestyle that blends expenses and income according to the individual preference. This makes ”financial freedom” a more possible and convenient state of being.
Financial Freedom is Time Freedom
”Time is money”, is the general belief in the professional world. This attitude does not allow space for leisure time. However, financial freedom has changed this concept of work by enabling a person to enjoy leisure without hampering his steady income in any manner. The entire concept of “financial freedom” is based on assets and investments that are compounded over time to generate money. It takes care of the regular expenses and leaves a person with both time and money in his hands. A financially independent person is free from the clutches of time-for-money routine.
Achieving Financial Freedom
To understand ”financial freedom” one must come out of the traditional concepts regarding income and expenses.
We have been taught that timely work generates money. ”Financial freedom” opposes this concept of time-for-money swap and lets the money work for the individual instead. However, in spite of this advantage many professionals find it difficult to work without a fixed routine.
Thus, to achieve financial freedom one needs to change their old mindsets and develop a new attitude towards earning money. One must realize that money is simply the means to achieve ends.
One must also remember that a person cannot be judged by the money he possesses. Unless these misconceptions are cleared the entire purpose of financial freedom is defeated since satisfaction is the keyword to financial freedom.
Similarly, one must also get rid of the negative attitude towards earning money. While excess demand for wealth hampers one’s healthy relationship with finances, a healthy perception of money is necessary to maintain an over-all balance. Remember that one earns money to achieve ends and therefore, it is healthy and normal to earn money as long as one feels the ethical need to do so.
In the end, one may say that financial freedom is the state of mind which works towards development through a process of self liberation.
Realities of Financial Independence
Independence is a state of being every living being strives to achieve, and keep forever. From the moment a child sets foot in school, he is made to understand that the knowledge he gains from this point onward is for him to make intelligent use of, to shape his own future.
When one lives with his parents, he tends to take a lot of things for granted. Once one starts to earn his own living he is faced with two diabolical aspects: financial independence; and responsibility.
It is not enough to just earn money. A lot of factors crop up when one (sometimes arrogantly) decides to break away from the family and move into his own home. True, that now he doesn’t have to think twice before buying that extra pair shoes; after all, there is no father waiting at home to glare upon the packet in hand.
But one does have to think about the electricity bill that is due next week, the phone bill which now seems to be of an astronomical level, the laundry that needs to be picked up and the EMI that needs to be paid. The money that has been earned after hours of toil seems to trickle down into oblivion.
In Economics, we learn that a country grows only through investment. And investment is the direct result of savings.
Similarly, in case of an individual, his financial state grows through saving. Parts of this saving can be invested in stocks and bonds. And since emergencies and accidents don’t come with trailers before them, security in terms of Medical and other insurances need to be made.
Women in India have, for the longest time, been financially dependent on the men: first as a daughter on her father, second as a wife on her husband, and then as a mother on her children.
Although this has saved them the worry of earning their own living, it has come with its share of hitches as well. A wife abused by her husband is unable to leave him and sustain herself. Even after divorce, she is at the mercy of her husband for child support.
But with changing times the modern Indian woman knows how to make her own living. The power of money no longer manipulates her life.
To live off others brings with it self loathing and ridicule. Therefore, everyone should work towards financial independence.
Start Your Journey on the Path to Financial Freedom
To command financial stability and security in life, you have to plan and work hard over time. But to make things a little easier for you, here are the most important and time proven traits that could help you achieve your financial goals.
Health is Wealth (take care of yourself)
This may appear immaterial, but is very relevant. Good health ensures that you not only have the physical and psychological vigor to meet and rise above the challenges of your life, it also assures that you shall be there to savor the success of your dreams being fulfilled.
So do have periodic check ups with your physician, do regular exercise, and maintain a healthy diet. And start early. The less care you take now, the more difficult it will be to make up for it later.
Define Your Vision
Defining your vision for your work and life is crucial to your success. What do you want? Is it financial independence; being your own boss; greater security for your family; a sound launching platform for your children? Whatever it is, you should always you’re your vision in focus. Reinforce the vision and its role in as many ways, and in times of trouble seek guidance and solace from it.
Invest Your Money Wisely
Although your basic income shall be sourced from your current job(s), do not limit yourself to only this. You should try and augment your income by investing your money judiciously and beneficially. You could fund or start a business that you are passionate about; other wise you could invest in safe market options.
Save Your Money
A good way to build a solid financial base is to adopt the old thrifty mentality. Allocate a certain percentage of your income to your savings on a regular basis, and set aside this money every month, every time you receive funds or get paid.
A convenient way to avoid the compulsive buying and the trap of budgetary mismanagement is to always remember to pay your savings account first. This cuts off unnecessary expenses while providing for your contingencies as and when they arise. Although the interest given for a savings account is less than some other investments, separately earmarking your savings is the safest option.
Power Trait 5 – Spend Your Money Wisely
Differentiate within your expenses and avoid the extraneous ones. Before any purchase, ask yourself if you really need it. Be true to yourself and your vision “Do I really need that?” Only you can answer this question but you must be true to yourself and your vision of financial independence.
Tips To Ensure a Successful Financial Independence Plan
Even if you have determined a set of financial plans for yourself, be they market investment, real estate, or retirement, you must seek to coordinate these plans to maximize your returns.
To help you achieve this, we outline the crucial 7 steps to financial planning that will allow you to reach your goals, within the time that you require, with tax benefits, and with minimal risk:
- Emergency Cash Reserves. Always set aside 3- 6 months of your salary in an account from which you can withdraw money at short notice without incurring any penalty. For any short term unexpected expenditures, try to avoid using credit cards and use this cash instead.
- Risk Management. Insurance is the surest form of risk management. So, insure your car, home, and other significant assets. You may also consider life insurance to help compensate for lost income and repay debts in case of death. While finalizing your insurance option, always choose the insurance type that suits your requirements, and work out the necessary amount of coverage which is affordable for you.
- Estate Plan. The basic features of a personal estate plan are a will, and a durable power of attorney as provision for your financial and medical care. In case of larger estates, you may require, in addition, a living trust, marital trusts, and charitable trusts. These will ensure that your assets are maintained and passed on to your future generations.
- Goal Setting. This is the coordinating framework for your financial plan. Whenever you receive an investment offer, always refer it to your overall financial goals. Ask yourself whether it is conducive or productive for, and suits, your goals. This commitment to your goals will help you remain focused in the long run.
- You need to have an asset allocation plan customized to meet your goals and to keep the element of risk within limits you find acceptable. Without this, your investments will be subject merely to the vagaries of the economy instead of being directed by your requirements.
- Retirement Plans. The income for supplementing your social security will derive from defined contribution plans and benefit plans. During your working life, try to make as much yearly contributions to these set plans as possible. These funds grow fast as a result of tax deferral, and since they are sourced right from your paycheck, are relatively painless.
- Tax Planning. This means taking advantage of all the possible tax deductions and tax deferred plans that you are permitted by law, as well as using tax credits wherever you are eligible. A good tax plan may save you thousands of dollars in taxes.
If you feel that you can’t handle all this on your own, seek the services of a fee-only financial advisor or a financial coach to devise a comprehensive plan according to what your assets and your needs.
Remember: Your financial security depends on the proper coordination of these separate wealth building steps.
Working to Achieve Financial Independence
Many of us may speak about financial independence but the question is how many of us actually achieve it?
Very few percentages of us actually know how to make a sound plan and even less are able to be discipline to execute the plan. Carefully consider the money management program as it would help you to be financially independent.
Any sort of financial planning starts with a proper money management. While building on your plan make sure that you work on two important aspects. Firstly addressing the issue of finding the fund to back your plans and secondly to get the money planned in such a way that your goals are met.
This money would help you to hold on important opportunities. You must be a little taken aback if you realize that every one of us have some kind of money management in us. There can various methods of conducting a sound money management. It is important that you have an organized approach to the plan and make the most out of the money. Be focused to identify your spending so that you know exactly how much to invest.
If you set your self a goal it would give you a purpose to invest. Your plans may be overlapping therefore be aware of the fact that your goals may be overlapping.
For example your retirement plan may overlap your plan for investment and money management. By now you must have realized that money management is important for the future financial goals.
Please stick to a realistic money management plan. Be aware of how you would achieve the funds. Your goals should be specific. Prioritize your goals so that the path becomes easier.
We are often misled by few pre conceived notions such as living for the moment. We fail to realize that there is a future that awaits us. It’s important to have an organized approach.
If you fail to have an organized approach you may find yourself in some kind of trouble.
You would have to overpay taxes. You would unnecessarily expose to financial risks.
Unavailability of funds for your children’s higher education. Unsure old age due to lack of planning.
And just the opposite would be the scenario if you have had an organized money management plan made at the right time. The best outcome of a proper money management is that you are able to deal with both long and short term expenditure.
New Trends Towards Financial Management
Economic insecurity is fast rising in the hearts of individual, who faced with the possibility of near bankruptcy, due to rising cost of living and the unavailability of high paying jobs, are focusing their attention on alternatives, in the market, which will help them to fend for themselves and their families.
This is why many are on the look out for any secondary source of income or planning on security measures, which will act as back ups in case of financial emergency like losing their job.
Others who are already suffering at the hands of social trends are desperately trying to make ends meet and look for a chance to restart their careers. There are also others, who by keeping tabs on the market patterns have managed to accumulate moolah and are further trying to cash in on their winning streak, hoping their years to come will be secure.
High Demand Services
That is why choosing the right the right kind and so-called ‘in’ profession is very important. Whether it is a sit at home kind of venture or an out and out rigorous field venture, nothing else ensures success except its demand in the market, even amidst a full-scale economic crisis.
Since today’s world is completely governed by the powers of technology, especially the computer; having a job, which keeps in control the ills of it, like identity theft and general problems of the computer, is a sure way of finding success.
As is with cars, people use them every single day, but fail to know how to maintain and keep them in check. So whenever things go wrong with computers, however much the situation is adverse, you will be in demand.
Best Chances of Success
That is why, though anyone with a bit of luck and research can achieve success, people with information servicing, sales and advertising background, or those who are hobbyist have a guaranteed chance of being successful.
The chances are even more favorable for sole ownership of small businesses, as they can use such products on their website to earn added cash.
Where to Look
If you are looking for a wholesome win, then the best option for you is to join hands in partnership with a well reputed and sound company, which will help maximize your profits and aid you in your path to an economically secure future. But before joining analyze the company’s reimbursement schemes and support systems so that you can get the best and the most secure deal out of this venture.
With the rapid increase in the cost and standard of living bankruptcy is becoming a fairly common phenomenon. Bills, loans, credit card installments, fees etc; the list goes on. If you don’t know how to manage your finances and are the stress is building up, you might start feeling that filing for bankruptcy is the only way out.
It’s important to understand that this should be your absolutely last resort. You should try debit card management counseling and services and better budget management before that.
You can also check out the debt settlement plans and see if they work out for you. Get an advisor who can help you sought things out. But remember a debt settlement plan will give you but a breathing space. It will not really make all your problems melt away.
You should seek a consultant with enough experience. Getting reference from people you know is a good idea. The debt consultant will negotiate with your lenders to lower the installment and interest rates.
Secondly he would also help you by consolidating all your dues into one single amount. So, you don’t have to worry about managing your installments. You will just have towards a single due amount. He/ she will help you get your paperwork and applications in order. All this can help you regain your financial standing in a relatively short time period.
Of course there are some minimum qualifications for making it to the program. If you do qualify for the program your monthly budget will be chalked out and a required sum of money will be set aside for your payments. Systematizing things will help you get back on track.
If you are tired of paying your bills that keep piling up in front of your face, it is time to rethink your life a little bit. Enrolling yourself for the abovementioned program is a good first step. It will give a new, positive direction to your life.
It is crucial to manage your loans properly and if you can’t do it yourself you should not hesitate before asking for help. It is important to do these things right, if you are looking to not endanger all that you hold dear to your heart.
Money management is a very important skill. One needs to be taught the importance of saving money and planning a budget from early on in life. Watch your steps before you have to learn these lessons the hard way.
But if you do manage to land yourself in trouble don’t think twice before enrolling the help of a debt consultant. They will chalk out a plan for your specific, personalized needs. Choose your plan wisely.
One of the most popular plans can get you back on your feet, financially in as little as five years. But remember that you have to want to get out of trouble and consequently stay out of it.
You need to have a strong determination to keep your finances in order and not splurge on things that you can’t ultimately afford.
If you do manage to get a second chance on your financial life, don’t while it away. Learn to be wise about money matters before it is too late.
Distinguishing Between Wants and Needs in Life to Attain Financial Freedom
Financial freedom and security come from regulating your needs and wants in a prudent manner. Money offers security, but it also takes away your security if it is spend on the wrong things. In order to deal with this paradoxical situation, you need to understand and follow the basic differences between needs and wants in life.
It is important to handle money in such a way that you don’t have to beg and borrow from someone else when there is a dearth for it. Such situations can be avoided if you can keep away from certain luxuries in your life and instead concentrate on saving money to fulfill the basic needs in life.
If you don’t have enough money to lead a normal and comfortable life, you’ll end up leading an inhibited and unpleasant life. You will also end up doing the wrong job and this would make you unhappy and unsatisfied. If there is no security in your life you will also become less active in your life. It would also stop you from doing what you really want to do in life by limiting your choices and restricting your lifestyle.
Luxuries in life can be avoided to a great extent as long as you have the basic necessities in place. Luxuries are add-ons and can wait for sometime while we have enough money in our pockets.
This might look restricting to a lot of people. They might even argue that there is no point waiting for a fantastic future when you’ll have money to satisfy all your needs and wants. First of all you need to understand that money can’t guarantee you anything in life.
Money is not an end in itself. It is entirely up to each and every person to handle money in a wise manner to meet his or her ends. You need to be stringent with your money and spend only on things that you cannot do without.
This logic applies not only to grown-ups but also students and children. The value of money needs to be a realized at a very young age so that your whole world does not revolve around making money. There are other things to life than just money.
If you know exactly what you want and what you want to become in life, you can work towards it and take things from there. Once you are financially secure and independent you can live life the way you want to.
This does not mean you live a luxurious life spending money on unwanted things. Keeping in mind the difference between wants and ends, you can lead a life that is fulfilling and uninhibiting.
Organizing Your Debts for Financial Freedom
Recent sets of data released by the Federal Reserve, the organization that track and records all monetary affairs in the USA reveal that Americans owe more than two trillion dollars on their credit cards and that the overall credit card debt for each individual in the country comes up to more than seven thousand dollars.
These astounding figures for credit card debt in the USA are bound to affect everyone. What then, you may ask, are the available solutions? You could start by following the suggestions given below which will help you effectively manage your financial liabilities:
Organize your outstanding debt – Begin by taking stock of each and every revolving obligation that you have. This would include all your credit and charge cards. Tabulate and record your liabilities based upon installment schedules, bills etc. Accounting for applicable interest rates calculate the exact amount that you owe.
It is important to know the interest rate on your monthly bills since it is the continuing cost you incur against an ongoing debt every month. So it is to your benefit if you can clear off the loan charging the steepest interest rate as early as you can.
So while making repayments try and send the maximum amount possible to the lender with the highest rate even if it means that you are left with making only the minimum due payments to the rest. In this manner, once the debt with the steepest interest has been repaid, you can follow the same policy for the loan with the next highest rate of interest.
Negotiate for lower interest rates – try and maintain an immaculate repayment history and then call or meet your lenders and request them to lower your rate of interest. Since it is costly for lenders to find new customers, if your credit worthiness is proven, they shall always try to retain you.
So, most lenders will allow customers in good standing to enjoy reduced rates. However, once they agree to reduce your rate, ensure that you pay your bills on time; failing which they could take back the facility and raise the applicable rate of interest once again.
Use cash when you can – Since it’s so much simpler to use a card in comparison to carrying cash or writing out checks, most of us get into the habit of using cards even if these attract charges. So try and cultivate the habit of writing out a check and paying with cash rather than instinctively using the credit card.
Always keep in mind that a credit card purchase is not a gift but a loan. So be well advised when you use the card: rather not use the card at all if you can’t afford the liability.
Remember it is better not spending at all rather than spending so much that it begins to hurt you.
If you can organize your finances, minimize your costs and make them commensurate with your earnings you are sure to get tour finances in order and avoid any trouble in the future. If you set you mind to it, financial freedom is not that hard a work, and well worth all the effort.
Six Ways to Teach Children About Money and the Financial Markets
If you are planning to teach your child to learn how to handle money then the best way to do so is to get them started on allowance early. When money matters children need to get a first hand experience. If they do so they would understand what it takes to do the exchanging.
If your child wants something from you, instead of buying it for him or her, give your child the money. You should realize that it is important for your child to know how to handle money.
As a child reaches a certain age you should realize his or her inclinations and let the child handle the money on her own. Let the child purchase his or her own basic requirements such as school accessories. But make sure that the child knows his or her limitations. As a guardian you should have a keen eye on their activities.
The next step would be for you as a guardian to establish a budget for your children. Children no matter how young they are have the capacity to maintain a notebook in which they can just dot down the money they have got and the money they have spent.
Make sure that you children know about their future goals and it’s your duty to make sure that they achieve it.
As your child grow and matures open a savings account for them. You will be simply surprised that this would be such a terrific task! It’s very satisfying to see how the compound interest just adds on. Put in an extra effort to and show your child by making charts how the account is increasing. And show your child that if he or she continues do so what the account might look like after few years.
Make your child play an important part while you make a major purchase, such as a dish washer or car. Let your child aware that the amount of research gets into a new purchase. The process of comparison discount and negotiation are important and your child will learn this. Make sure you have your child accompanying you on the real purchase day.
Your children would be privileged if they have a knack for the business world. Increasing stock values and with time if they start owning some share it could get better. The rise and fall in the prices would be interesting for the young investors. So allow them full freedom.
Financial Independence for Seniors
The government initiated reverse mortgage program has come as a boon for many senior citizens. The scheme, which allows persons of 62 years and above to exchange a section of their house’s equity into tax less money and does not have to be reimbursed for as long as they are alive, makes it convenient for them to lead fulfilling and uncompromising lives even when most of the country is plagued with increasing expenses in every sphere of life.
Moreover, the effects of such expenses get multiplied when it comes to the older generation because they have to not only deal with property taxes but also overall expenses like health, and home.
This therefore ends ups making the senior citizen’s life anything but relaxed and restful.
The ever-increasing land taxes are becoming burdensome for these old people. It is especially problematic for retired professionals for whom two months of savings equates to a minor amount of tax to be paid.
This taxation problem is becoming the cause for many of them leaving their homes of 20-30 years, because of the inability to pay up. This is where Kaye Financial Corporation, one of the leading mortgage companies in Michigan, has been of massive help to these aged people.
In view of the fact that most of these people are forced to survive on a certain amount of given income, they are forced to compromise of important factors of their lives to deal with house rents. But now with this new scheme of reverse mortgage, they can use the extra money to lead complete lives, without worrying about how to get resources to survive, even after retirement.
This is especially beneficial because the money is provided according to the person’s needs. It can be either sent altogether in a bulk amount, once a month or in small amounts when needed. So, this becomes advantageous to everyone according to his or her needs.
Moreover, since most loans are out of bounds for senior citizens, the reverse loan comes as comforting news to them, as it does not demand stipulated income, health or age requirements for applying. Thus such schemes provide the elders with a sense of well being, freedom and security.
They can further use the money coming in from this reverse mortgaging scheme to pay off taxes, rents, bills and other expenses like mortgage, therefore lead uncompromising lives. So it can be said the reverse mortgage scheme is then the best thing that could have happened to these senior citizens, as now they will be able to continue living their lives to the fullest of their desires.
Financial Independence and Retirement Planning
Economic independence is essential for all of us post-retirement. We all desire a comfortable and relaxed life during our old age. Sadly most of us are unable to have the kind of life we wanted after leaving work, simply due to lack of money.
Under several situations, people have to keep working even after they have retired, simply to meet basic necessities. The unhappy circumstance might have been different with a certain amount of careful and easy preparation and investment.
These points can let you have the economic independence and life you desired at an older age.
- The position you aim at the end – Remember that the vital section of any old age plan is to figure out the position you desire at the last part of life. Most of us have no clue about our desired life at old age, and so we go in for old age schemes with no proper mental aim fixed in our mind.
- List your wants – Just as you don’t drive a car with no idea of where you want to go, don’t plan without thinking. When you take any retirement scheme, list all that you desire to have after you leave work. List the type of residence you desire, the type of car you desire, the kind of life you want and so on. Don’t miss out anything. Put down everything to the very last detail.
- Drill the points mentally – Keep the sheet of paper somewhere, which is most accessible. This way you can see it as much as possible. This process will gradually fix in your mental levels the post retirement and old age aims you have. Then, gradually you will form concepts to reach those aims simply by seeing and mentally possessing them.
- Calculate the money needed for the aims – Figure out the amount of finance needed to make the aims true. Then search for the assets and investment policies, which can make you reach the position. I will suggest that you know all about retirement schemes and old age plans. Then you will be in complete control of the future.
Most of us leave the various aspects of old age plans to a monetary care corporation. But manage it yourselves. Go through books dealing with the subjects of investment policies and making money.
These points can aid you in getting the economically liberated life in the late years.
Financial Freedom Comes With a Price
For anybody who is planning to, or going about, starting a home-based-business, there are some basic provisos and warnings that come as fine print, and regarding which nothing much is ever said by the prospective recruiters. But it is imperative that you give due heed to these basic truths.
Firstly, remember that you will always have to make some sacrifices. You will be required to expend money, time and energy to get any business off the ground. Most recruiters misrepresent the opportunity when they harp on the fact that anyone can do it, without mentioning the high fallout rate.
This means that you would have to sacrifice some or much of the time that you would otherwise spend doing the things you enjoy or in the company of friends and family. This will certainly produce stress and resentment and you need to be prepared in advance to handle the consequences.
You will moreover need the extra energy, over and above your normal quota given over to your regular job, family and household, to do the things necessary for your business. So you need to tap into your extra reserves: develop your drive to succeed and keep yourself motivated by telling yourself that all this will be worth your while in the long run.
As for the financial sacrifices, there are means to gradually absorb the burden or even remove it completely, but upfront, you have to allocate some money to set things moving.
The strategy is to be able to see these sacrifices as something positive and productive. So you need to be optimistic and consider these as investments for your future and your independence. Consider the advantages of prudence and fortitude: don’t be disheartened by initial failures but learn from them. You can make your sacrifices and your failures the steeping stones to your success.
Your success is the one that you make and give o yourself. You can think of it as your reward, as something which has already been made out in your name, but your bit is to deserve it, to make it your own. So go out there and seek out your success that is waiting for you to grab it. There shall be times when you will be sorely tested, but you will have to grit your teeth, clench your fists and grind it out. At times like these, simply shut your mind to all the negative input, and press on keeping you goal and your vision in mind. All this is much easier said than done, but it also the long and difficult road all must travel to success.
Goal Setting for Financial Independence
The first step you should take while managing your money is to have a financial goal. The New Year is an ideal time that would help you to take some important decisions. This is the time to review your financial goals. Your goals would help to go through with your finances.
You should have something towards which you should work everyday. You should have a planned budget and use these goals that you have set as your map. These financial goals help to motivate you and encourage you to save. Without a proper plan it is difficult to get anywhere so it is important to be well directed.
In case you don’t have a financial goal you will never be able to achieve a financial independence. You need to dot down what you need to accomplish. Make a list of things you want. Your list may start with the first step of being debt free; it can be followed by starting a retirement account, saving enough to sponsor a home for oneself and other basic necessities.
Let not all these stop you from penning down all that you want and wish to fit in your financial planning. Incase you are longing for new furniture or a trip to Europe then include them too. These are money goals that are achievable. Make sure you prioritize our wants. You should realize that getting out of debt is of top urgency whereas an Europe tour can wait.
There are certain goals that we work on consistently, and there are some that wait for certain goals to be accomplished before they can be executed. It is important to set time limitations for the fulfillment of the goals.
Let’s take for example that there may be about 25 years before you retire so you would want to be debt free in about next 6 years. Sensibly work on your goals. Remember that you are always open to modify them.
Your next step would be to break your goals into short term goals. When we break a large task into smaller steps it helps us to accomplish them better. It makes the task easier. Let’s see how this would work for a getting debt free. We need to do one task at a time.
First, we should make a debt master list with all the detail of the debtors. Then set up a budget and cut down on unnecessary spending. Call credit card and request for lower interest rates. Sell of unnecessary things to pay of one debt at a time.
Consistently keep working towards your goal!