Here is how to pay off your debt:

1. List all your debts in order of the smallest to largest balance. Yup even your sari sari store debts. All means all. Debts from your relatives, friends, 0% interest debts, ALL.

2. Pay off the small debts first, then the big debts. Why? Dave Ramsey said that finance is 80% behavior, 20% knowledge. We want to start modifying your behavior. Once you get small wins you get excited to tackle the bigger ones.

3. Put all extra income into paying off those debts. Tips, salary raise, gifts – ALL!

4. Keep paying the minimum on all debts except the smallest debt. Attack on all sides!

My son, if you have put up security for your neighbor, if you have struck hands in pledge for another, Proverbs 6:1

Free yourself, like a gazelle from the hand of the hunter, like a bird from the snare of the fowler. Proverbs 6:5

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