debts will disappear! Use this to pay off all of your debts except your house. We will address the house later.

Step 3: Build and emergency fund of 3-6 months expenses and save for retirement.

At this point you should have everything paid off except for the mortgage. Now you need to build a fully established emergency fund of 3 to 6 months of expenses. This will take a little while longer than the first emergency fund took, but it is absolutely necessary. Also at this time you are ready to

There are five steps that I recommend to achieve your goal of financial independence.

In this article I will explain to you 5 effective steps that you can take to completely eliminate your credit card debts and other personal debts forever! Just imagine yourself living a life with no debts, not even a mortgage payment. Can you imagine it? Have you got the little picture of that life going on in your head right now? Good. Now read on to see how you can stop picturing it in your head, and start living it all around you.

Step 1: Put $1,000 in the bank right now!

I know, I know. You are thinking to yourself, "How can I put 1,000 dollars in the bank, I am reading this because I don't have money." Well, its easy, kind of. With some determination you can easily build up that kind of money. How much junk do you have laying around the house that could be sold? I know I had more dollars and cents laying around in my garage than I would have ever guessed. Grab this stuff up and have a garage sale, or put it up on eBay. Come on, when was the last time you played that Atari game system, really? Get my point? This $1,000 is called an emergency fund. You keep it intact throughout step 1 and step 2 NO MATTER WHAT!!

Step 2: Create your Debt Pyramid

In this step, you will get all of your bills and debts out in front of you. Now take them all and arrange them in the order of largest balance to smallest balance (balance is the amount that you owe the creditor). Now you have a pyramid of debts that you owe. Now the next step is going to take some time but it is totally worth it in the end so stick to it. Your start by scraping up enough cash to completely pay off the smallest debt in the pyramid. Then you apply that payment of the paid off smallest debt to the next debt in the pyramid. Once that debt is paid off, you apply both of the payments of the paid off debts to the next balance, and so on and so forth until all of your debts are gone. You'd be amazed at how quickly your last few debts will disappear! Use this to pay off all of your debts except your house. We will address the house later.

Step 3: Build and emergency fund of 3-6 months expenses and save for retirement.

At this point you should have everything paid off except for the mortgage. Now you need to build a fully established emergency fund of 3 to 6 months of expenses. This will take a little while longer than the first emergency fund took, but it is absolutely necessary. Also at this time you are ready to

it all around you.

Step 1: Put $1,000 in the bank right now!

I know, I know. You are thinking to yourself, "How can I put 1,000 dollars in the bank, I am reading this because I don't have money." Well, its easy, kind of. With some determination you can easily build up that kind of money. How much junk do you have laying around the house that could be sold? I know I had more dollars and cents laying around in my garage than I would have ever guessed. Grab this stuff up and have a garage sale, or put it up on eBay. Come on, when was the last time you played that Atari game system, really? Get my point? This $1,000 is called an emergency fund. You keep it intact throughout step 1 and step 2 NO MATTER WHAT!!

Step 2: Create your Debt Pyramid

In this step, you will get all of your bills and debts out in front of you. Now take them all and arrange them in the order of largest balance to smallest balance (balance is the amount that you owe the creditor). Now you have a pyramid of debts that you owe. Now the next step is going to take some time but it is totally worth it in the end so stick to it. Your start by scraping up enough cash to completely pay off the smallest debt in the pyramid. Then you apply that payment of the paid off smallest debt to the next debt in the pyramid. Once that debt is paid off, you apply both of the payments of the paid off debts to the next balance, and so on and so forth until all of your debts are gone. You'd be amazed at how quickly your last few debts will disappear! Use this to pay off all of your debts except your house. We will address the house later.

Step 3: Build and emergency fund of 3-6 months expenses and save for retirement.

At this point you should have everything paid off except for the mortgage. Now you need to build a fully established emergency fund of 3 to 6 months of expenses. This will take a little while longer than the first emergency fund took, but it is absolutely necessary. Also at this time you are ready to

have a garage sale, or put it up on eBay. Come on, when was the last time you played that Atari game system, really? Get my point? This $1,000 is called an emergency fund. You keep it intact throughout step 1 and step 2 NO MATTER WHAT!!

Step 2: Create your Debt Pyramid

In this step, you will get all of your bills and debts out in front of you. Now take them all and arrange them in the order of largest balance to smallest balance (balance is the amount that you owe the creditor). Now you have a pyramid of debts that you owe. Now the next step is going to take some time but it is totally worth it in the end so stick to it. Your start by scraping up enough cash to completely pay off the smallest debt in the pyramid. Then you apply that payment of the paid off smallest debt to the next debt in the pyramid. Once that debt is paid off, you apply both of the payments of the paid off debts to the next balance, and so on and so forth until all of your debts are gone. You'd be amazed at how quickly your last few debts will disappear! Use this to pay off all of your debts except your house. We will address the house later.

Step 3: Build and emergency fund of 3-6 months expenses and save for retirement.

At this point you should have everything paid off except for the mortgage. Now you need to build a fully established emergency fund of 3 to 6 months of expenses. This will take a little while longer than the first emergency fund took, but it is absolutely necessary. Also at this time you are ready to

e a pyramid of debts that you owe. Now the next step is going to take some time but it is totally worth it in the end so stick to it. Your start by scraping up enough cash to completely pay off the smallest debt in the pyramid. Then you apply that payment of the paid off smallest debt to the next debt in the pyramid. Once that debt is paid off, you apply both of the payments of the paid off debts to the next balance, and so on and so forth until all of your debts are gone. You'd be amazed at how quickly your last few debts will disappear! Use this to pay off all of your debts except your house. We will address the house later.

Step 3: Build and emergency fund of 3-6 months expenses and save for retirement.

At this point you should have everything paid off except for the mortgage. Now you need to build a fully established emergency fund of 3 to 6 months of expenses. This will take a little while longer than the first emergency fund took, but it is absolutely necessary. Also at this time you are ready to

debts will disappear! Use this to pay off all of your debts except your house. We will address the house later.

Step 3: Build and emergency fund of 3-6 months expenses and save for retirement.

At this point you should have everything paid off except for the mortgage. Now you need to build a fully established emergency fund of 3 to 6 months of expenses. This will take a little while longer than the first emergency fund took, but it is absolutely necessary. Also at this time you are ready to start investing 15% of you income into a retirement investment of some sort (I recommend mutual funds with a proven track record).

Step 4: Continue to Build Wealth and Pay Off That House!

This step is the next to last step and it will take the longest. But don't get discouraged because I am sure you are getting pretty thrifty with your money by now and with some more of that determination you had in step 1, you will knock this thing out in no time. Watching your bank account grow should be good motivation for you. Most people should expect to pay off their home in 7-10 years! Get after it!

Step 5: Enjoy the Good Life!

Now the house is paid for and you are living the good life with now debts, no car payment, no mortgage payment, and a huge bank account. It is fun to watch your wealth now grow at phenomenal rates, and the thoughts of early retirement get more and more realistic everyday!

Good Luck in Your Journey,