How to Become Debt Free With Planning and Discipline

How to become debt free is something every consumer ponders at one time or another. For many of us it seems like a pipe dream, something beyond our reach. But in reality, anyone can live debt free if they work hard to achieve it. Sure, it will take longer for some people than it will for others, but it's almost always possible.

In this article, I've gathered the advice of a variety of financial experts, all of them giving tips on how to become debt free in your lifetime. You might also want to check out my tutorial on the best ways to pay off debt.

Expert Advice on Becoming Debt Free

Without further ado, let's look at what the credit experts have to say about becoming debt free. I've searched far and wide to gather the best advice, and I've arranged their quotes in a way that makes sense.

Part 1 - Fixing the Problem

Before you can become debt free, you need to identify and eliminate the source of the problem. In other words, you need to find out why you're racking up so much debt and do something to change it. Here's what the experts have to say about this step in the process.

"Understand why you're in debt. If you don't fix the underlying problem, conquering the symptoms will do you no good in the long run. You'll repeat the same behavior and end up in the same debt hole again." -Jean Chatzky, CNN Money

"You need to be willing to work and sacrifice in order to fix the situations that you created with your own irresponsibility. If you are not willing, then you cannot be helped." -Dave Ramsey, daveramsey.com

"After keeping track of expenses, consumers are often amazed how much money they waste each month on nonessential items such as dry cleaning, restaurant meals and expensive coffee." -Emily Starbuck Gerson, creditcards.com

Part 2 - Creating a Plan for Success

Awareness is the key to success when becoming debt free, and this includes creating a plan for success. You must understand what's going on with your finances, and work from there to create a budget and a debt reduction plan. Here's some advice to get you started.

"To keep costs lower than your income, weigh true needs vs. wants, and spend accordingly ... Take a closer look at overall family spending patterns. What expenses can be cut back?" -Deborah Nayrocker, cbn.com

"Determine the amount to put towards debt repayment by subtracting the amount needed for total monthly expenses (not including debt) from your total net monthly income (after payroll deductions)." -University of Wisconsin, uwex.edu

Part 3 - Reducing Your Debt Balances

The only way to become debt free is to consistently chip away at your outstanding balances. This often means paying more than the minimum amount due each month. Here's some guidance on this part of the process.

"Figure your monthly minimums for each of your debts and (if possible) add 5% or 10% to this number. The addition is not mandatory but will dramatically improve the success of the program." -Michael Peterson, womentodaymagazine.com

"I lined up my debts from lowest balance to highest, and repaid them in that order. Though this didn’t yield mathematically optimal results, it gave me quick victories." -getrichslowly.org

"Now that you have your debts prioritized, take a look at your assets. If you have any cash in savings accounts or under the mattress, you should immediately consider using all of it to pay off some debt."-David Weliver, moneyunder30.com

"You will have to make sacrifices to pay down your debt balances, and you may need to work extra hours as well. It's up to you to make these changes. Nobody else can do it for you. The government did not impose this debt upon you, so don't look to them for help. Look within yourself." -Brandon Cornett, homebuyinginstitute.com

This article offers advice on how to become debt free through planning and discipline. If you would like to learn more about this topic, check out the debt category for similar articles and tutorials.