This is where you take control in every way.  These are the steps to complete debt eradication:

1   Draw up a detailed budget

2  Make a detailed list of your outstanding debts.  The full amount outstanding, the repayment amount, the time left to settle and the contact person for negotiation.  List them in the order of smallest to largest debt. Print it out and stick it on your wall above your desk. Look at it every day.

3   Cut out unnecessary expenses – Examples: Call for new insurance quotes. Downsize your medical aid to a hospital plan. Downgrade your car. Sell off unwanted assets. Do whatever it takes to lower your monthly expenses and free up some cash flow

4   Once you have freed up some cash flow, follow this process:

a)       Contact the creditor for the smallest debt (like a credit card) and negotiate. Maybe ask for a discount if settled in full up front.  Then, use the freed up cash flow from lowering your monthly expenses and selling off unwanted assets to settle this account.  Once settled, cross it off your list with a big red marking pen

b)      Contact the next creditor on the list and negotiate. Use the newly freed up money from your now-paid credit card to add to your standard repayment.  In this way, settle it as quickly as possible.  Once settled, use your red marker and cross it off the list.

c)      Contact the next creditor on your list and negotiate. By using the freed up money from the 2 accounts settled, you should be in a position to settle this account fairly quickly.  Again, use the red marker to cross it off the list when settled.

By following this method, most average income earners, without earning one cent extra, will be able to be absolutely DEBT FREE in approximately 8 years. Including your home loan.  It is so simple, yet so few people have the discipline to follow through with it.  Imagine the freedom you will enjoy by being completely debt-free!