Things You'll Need:
- budget
- financial planner
- perseverance
- calculator
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Step 1
Make the decision to eliminate the need for credit in your life. Once that decision is made, the road to a credit free life becomes a little harder but once there, it will be worth it.
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Step 2
Make a plan to pay off all existing loans and credit cards within a year or two.
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Step 3
Depending on how much credit debt you have it may be necessary to consolidate the debt into one. This can be done through a credit consolidation company.
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Step 4
If you choose to pay off each debt individually, identify the sources of credit that have the highest amount of debt. Aggressively attack and pay off those debt sources first. Continue a pattern of paying off debt until everything is paid off.
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Step 5
While paying off debt, never utilize any credit cards. doing so is non productive to aggressively paying off debt. The only exception is in the time of an emergency when few other options are available.
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Step 6
Once all debt is paid off, obtain prepaid credit cards. Credit cards are often necessary to conduct business and make certain purchases and eliminates the need to carry cash. However, a prepaid Visa or Master card is funded with your money and is not actual credit.
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Step 7
Instead of using credit to make large purchases, plan the purchase weeks, months or even years in advance and save towards it.
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Step 8
Live within your means and there will never be a need to use credit.
