Steps out of debt

On Friday we learned the steps out of debt.

1.) Quit borrowing more money

2.) Need to save money

3.) Sell something

4.) Get a part time job or work overtime

5.) Use the Debt snowball

We learned that the debt snow ball is accounting for all of your needs and debt.  First you have to organize your debt from smallest amount to largest amount.  Divide your paycheck up into the category that are required to live.  Utilities, Food, Transportation, Bills and all your minimum payment on your debt.  When you have done this you put all of your extra money towards your smallest debt so that you will erase it faster.  When you pay off one you put all the money you were putting into the smallest payment and add it to your next smallest payment.  You continue this process until all the debt is gone.