The War on Debt

It seems that there are a lot of wars being fought all over the place every day. I don't just mean the wars we hear about in the news papers being fought in far away countries. I mean the wars in our back alleys and in our lives. There's the war on drugs. There's the war on terrorism but we don't have any immediate influence on what goes on there. Sure, get involved and educate yourself and your families but let's get real, are you going to fly to who knows where and take out Osama??

One war you should be getting involved in is the war on debt... YOUR DEBT!

So let's get right to it...

First step in the War on Debt: Get $1000 in the bank!
This will act as a mini-emergency fund. This is a critical step to provide a safety net if needed. The idea here is to avoid incurring any new debt.

Second Step in the War on Debt: Pay off all debts!
This is where we apply the Debt Snowball as I previously described.

Third step in the War on Debt: Get 6 months of living expenses in the bank. This will complete your emergency fund. This is basically your safety net. ALWAYS BE PREPARED FOR THE WORST!


So where can we find additional money for the Debt War? Well we could sell assets such as a car, boat, television, hockey card collection, etc. Anything that has any value can be sold and the profits put towards debt.

We could also free up cash from daily spending, which is actually the most important step. Simply by bringing a lunch with you to work instead of eating out can make a major impact on your War efforts.

Another way is to increase your income by taking on a part time job to aid in repaying debt.