I knew I had to change my entire lifestyle. The way I used to spend had to completely change but I was ready for it. That’s when I started reading different blogs to know what are debt free people’s habits and how to adopt their lifestyle and become a debt free person. That’s when I got to know few habits of debt free people.

Stick To A Budget

Ofcourse it’s not a secret that you want to be a debt free person, the best way to begin is to allocate a budget to yourself on monthly basis. This will help you in paying your debt as soon as you get extra money. I know it’s difficult to sticking to a budget but I promise it’s not impossible.

Don’t Eat Out Every Day

Going out to eat food on restaurants every day will be expensive enough! Like when you’re going to restaurant you’re paying for convenience. Yes, I know it’s a happy feel when you get food served but also it’s costly when you add it all. If you want to save hundreds of bucks every month, I would suggest you to make a meal plan for everyday different dishes and limit other grocery items or limit yourself how many times a week you will go to a restaurant or not going at all.

Save Money

There will a day come when you’re retired. If you’re not saving money for your retirement, dont be too late to start doing it. It is the right time to do so you can pay off your debt and save money for retirement at the same time.

And maybe in a year you would be able to buy branded clothes, spend money on food and possibly go to vacations.

This method of becoming credit card debt free will help you save money and improve your credit card score effectively.

To be very honest, this snowball method has helped thousands of people becoming debt free but I have an alternative method to doing it so which is much faster to pay off your credit card debt.

Our personal financial problem was credit card debt which was around $45,000. To make ourselves look and feel better we tried every single method to pay off your credit card debt. By the time we became debt free, we had almost 10 years of experience in financial services and we had knowledge of money other than what our bank accounts said.

The quickest way to pay off credit card debt is!

When we calculated the numbers that how many years it is going to take to pay off credit card debt through Snowball method it can take around eight to ten years to become debt free. I mean who is going to wait for eight to ten years?

We looked at all the factors doing it so, we created multiple spreadsheets and started calculating what is the factor which is taking long and we finally found out it was high-interest rates.

We calculated that we were paying upto $8000 annually in credit card interest payments with rates as much high as 21%. So we managed to reduce this factor.

$8000 is enough amount for a vacations twice a year. It’s you know around 400 bottles of wine which costs around $25. Paying off our credit card debt will help us give a raise of $8000 annually. What do you think you will do with $8000 if you boss raises your salary. You would have a fancy dinner and book a vacation immediately.