How to pay off your debts ASAP
It's common knowledge that debt and financial problems are the number one cause for stress and worry in our lives. Recently I met with "Frank and Ernest" who had amassed combined total debts of $127,000 across their credit cards, home loan and personal loans. Frank told me that they expected to be debt free in fifteen years (based on his mortgage etc). "How does being debt free within the next five years sound?' I asked. A Frank and Ernest Conversation. Frank: “You can't be debt free in 5 years or less if you own a home”. Me: “Really, do you mind if I use you as an example?” Frank: “This will be interesting” Me: “Can you save 10% of your gross income?” Frank: “If it means I will be debt free in 5 years absolutely. The following table shows the Frank and Ernest's financial income and expenses position Clients Gross Tax Approx Net Spend Frank Income $55,000 $10,000 $45,000 $2,400 (Fixed) Ernest Inco...