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What is Debt?

What is Debt?

 Debt is money that is owed by the barrower to the lender. Money you owe a person or a lender. Ever gone to a hospital and received an expensive bill? That is debt. Did you carry over a balance from last month's credit card bill? That is debt. There's no such thing as good or bad debt. Some examples of debt may include:

  • Credit Cards
  • Car Loan
  • Personal Loan
  • Mortgage 
  • Student Loans 

If you have any of these, you have debt! If you want financial freedom you need to eliminate debt completely. Can you imagine getting paid on Friday and you don't have to make any of these payments. Imagine how much money you would be able to save each month living debt free. Sky is the limit when your paycheck is all yours!


How to pay off debt?

Paying off debt can be stressful, but it is doable. The first step to paying off debt is to:

  1. Write down all of your debts from smallest to largest.
  2. Attack the smallest debt with any extra money you have. 
  3. Make the minimum payments on the larger debts.
By attacking the smallest debt first helps you build momentum to paying everything off. Don't worry about the highest interest. The goal is to be motivated to pay it all off as fast as you can. 


How to earn extra money to pay off debt?

Thankfully there are things you can do to earn a little extra cash like I did to pay my debt off quicker. Here are some of the things I did:

  1. Sell everything you don't use or need in your home; trust me you have clothes and items you've barely used and don't need.
  2. Resell- Buy items off of Alibaba or Temu and resell them for a profit. They have dirt cheap items that are guaranteed a profit. 
  3. Uber or Uber Eats- I did this on my free time, mainly on the weekends, you'll be surprised by how much you can make delivering food. My goal would be to make $100 every weekend, you can pay off debt so much quicker doing this! 


Trust the process!

If you're consistent you will have all of your debt paid off before you know it!





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