When it comes to transforming debt into wealth there is only one way to do it. You must get rid of your debt and use the extra money to create wealth. It does not get any more basic than this. There are tips, however, to make this happen fast.
Gather up all of your unsecured debts – credit cards, medical bills, personal loans – and make an honest list of your debts. Write down the card name, balance, minimum payment amount and interest rate. When you have created a chart you will need to look at two things first: the highest interest amount and the highest limit. The two debts that have these credentials should be paid off first. Pay minimum payments on all other debts, pay double or more on these two debts. Do this until the debt is gone.
When you approach your list again you will need to adjust the amounts for all the payments you have made and remove your two paid off debts. Again, select the two debts remaining and do the same thing. However, do not use the money you were paying on the two former debts to pay these down. The money you now have available from the two paid off debts will need to be invested.
Take the extra money you have and invest into a money market, CD’s, or even savings bonds. Whatever you can purchase that will make money for you while it sits. Consult a financial planner if you are not sure which direction to go. If you feel safe playing the stock market you can invest using a discount brokerage.
As you continue this process you will effectively pay down your debt and create wealth. The money you invest each month will not be missed; it was money you were already spending on bills. However, that money now is creating you a nest egg for your future.
The program does take some discipline, but once this is mastered you will easily see how effective it can be for your future.
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