How to Become Debt-Free

Are you struggling with debts? Credit card, mortgage, tax debts? Like most part of people are you in a bad financial situation caused by our consumer habits? Are you ready to take back your financial freedom? This article is the first one of a series that will take your in a new journey to teach you how to become debt free.

Ok, let's begin it!

The very first step is to get knowledge of your current assets and liabilities. You can be shocked to find out how much are your debts and how little of money you own. With the economic crisis we now are plunged in, most part of us owe much more significantly than we own.

Once this initial inventory is made, the next step is to set up a budget making choices about real needs and desires. This is a painful task. You can find that some things are no negotiable and unless you agree to lose your home, the mortgage payment is a necessity. Also you must consider to make payments on credit card debts, medical bills and other essential ones. Take action and analyze carefully your utility bills.

Do you really need air conditioning or could use fans? And what about central heats? Could you survive using space heaters? Do you really need that 120 cable channels or the basic package will do? And your cell phones are you prepared to let them out? What about to use them only as emergencies devices in cases you really them? Taking the right decisions you can lower your utility bills dramatically!

Then you got a lot of things that are not necessary. They make life agreeable but they are not essential to living. You need to take a hard look at your lifestyle choices you make and determine that you are going to cut out some of the luxuries for the time being.

Resuming our three steps to become debt free:

1. first pay all of the things that are fundamentally necessary,
2. second, pay down all your debts, and
3. third, put aside some money for emergencies so that you could face an unexpected expense without suffering a knock out.

More articles and information coming soon. http://www.howtobecomedebtfree.net Article Source: http://EzineArticles.com/?expert=Jose_Pereira