Now that we have established a savings account with $1000.00 in a separate account, it is time to start working on the next step; knocking down loans and credit cards. This is where we need to get some pen and paper; write down all unsecured loans and credit cards from smallest to largest.
We are going to work on loans first. If you are like me, I will use the available balance on the credit cards because my budget is so tight. Take the $167.00 that we have been putting into savings and since we are used to that money being allocated away from our budget; and start knocking out those loans. Starting with the smallest loan first, as you pay one loan off work on the next one and work your way down.
Depending on how many loans and balances you have, this will take a while. Be patient! …
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