Paying off your debt is the Best investment.

Remember borrower is a slave to lender…!!!

The First Step of Successful Financial Planning is to get out of debt.

Paying off your debt is the Best investment. Why it is important to get out of debt because Interest charges on debt cost money. It is money paid for borrowing. Interest does not result in any increase of goods or quality of life. All it does is cost us money and enrich someone else.

However not all debts are bad, To understand difference between Good debt and Bad debt, 
Click Here.

Stop increasing your debt.

Unless you stop increasing your debt you cannot control it. Record and categorize your spending then make a budget based on your spending record. Credit card is the worst form of debt thus, cut down all of your credit cards and replace them with debit cards.

List all your debts


Figure out how much you owe, to whom, and on what terms, interest rates etc. List each of your credit cards. You'll want to include the outstanding balance, interest rate, and minimum payment.

Start paying it off.

Start paying off all your bad debt first. Start one with maximum interest rate.However snowball method suggest that List your debts in order with the smallest payoff or balance first. Do not be concerned with interest rates or terms unless two debts have similar payoffs, then list the higher interest rate debt first. Paying the little debts off first gives you quick feedback, and you are more likely to stay with the plan.

If you are in a deep debt than consider to sell off your some assets if require. Finally, keep in mind that this process still takes time. There is no magic method of paying off debt, so realize that it may still take months or even a few years to become completely debt-free.