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Be debt free

Be Debt Free


Becoming debt-free is a significant financial goal that involves eliminating all forms of debt, including credit card balances, student loans, mortgages, and personal loans. Achieving this goal can lead to increased financial freedom, reduced stress, and the ability to allocate more resources toward savings and investments. Financial independence is often accompanied by an improved quality of life and greater flexibility in making life and career choices.


  1. Dave Ramsey - Offers a wealth of resources, including books, podcasts, and courses on how to achieve financial freedom and become debt-free.
  2. NerdWallet - Provides tools and advice for managing debt, including calculators and debt payoff strategies.
  3. The Simple Dollar - Features articles and guides on budgeting, saving, and paying off debt.
  4. Mint - A personal finance app that helps you track expenses, create budgets, and manage debt.
  5. Debt.org - Offers information and resources on debt relief options and strategies for becoming debt-free.

Example SMART Goals

  1. Pay off $5,000 in credit card debt within the next 12 months by allocating an extra $450 per month towards the debt, in addition to the minimum payments.
  2. Reduce student loan debt by $10,000 over the next 2 years by making monthly payments of $500 and applying any annual bonuses or tax refunds toward the balance.
  3. Eliminate a $15,000 car loan in 3 years by increasing monthly payments from $300 to $450 and avoiding any new car-related debt.
  4. Save $1,000 in an emergency fund within the next 6 months by setting aside $167 per month, to prevent accumulating new debt in case of unexpected expenses.
  5. Decrease mortgage principal by $20,000 in 5 years by making additional principal payments of $100 per month and applying any extra income, such as tax refunds or bonuses, toward the mortgage.

Example Habits

  1. Create and stick to a monthly budget that allocates a specific amount toward debt repayment.
  2. Use cash or debit cards for all purchases to avoid accumulating new credit card debt.
  3. Track every expense daily to identify areas where you can cut back and redirect funds toward debt payments.
  4. Set up automatic payments for all debts to ensure you never miss a payment and avoid late fees.
  5. Review and adjust your financial plans monthly to stay on track with your debt repayment goals and make any necessary adjustments.

Note this information is not a substitute for a professional advice and varies from person to person.