PIX11: Becoming financially independent: Steps to shed away debt

 

Financial planner and author of “The Money Queen’s Guide” Cary Carbonaro has steps to help you break away from debt.

4 steps to be free of debt 

1.     If you already are in debt,  make a plan and goal to pay if off aggressively.  For example if you owe 2,000 and can save $150 a month have that go towards the card and it will be paid off in just over 1 year.

2.     Know what is coming in and going out every month. Use your smart phone,  computer or paper and a pen to track every week.  This is step 1 and you can’t achieve financial freedom without it.

3.     Don’t use those credit cards if you can’t pay them off in full when the bill arrives,  use your debit card or cash instead.

4.     Pay off your higher interest cards first.  See if you can use a balance transfer offer.  They have fees to do this even if it is a zero percent for 12 months.  You have to do the math to see if it is worth it for you.  There is a great calculator online to help you figure it out. http://www.bankrate.com/calculators/credit-cards/credit-card-payoff-calculator.aspx

PIX11 Financial Fix: How to improve your credit

At the core of your financial world is a number that determines your financial trustworthiness. So just when you think you’re done with studying, exams, and worrying about your grades, guess what? You now have another, much more important number to study for the rest of your life — your credit score. It is literally the backbone of everything that happens moving forward.

Cary Carbonaro, author of “The Money Queen’s Guide,” provided information on how to understand your credit and steps to improve it.