5 Steps To Get Out Of Debt – Larry Felder
Larry Felder

5 Steps To Get Out Of Debt


How Do I Get Out Of Debt?

A few years back I got the family into a massive amount of debt.

The sleepless nights and the inability to take advantage of any way to move our future forward was killing me.

Is this question so overwhelming you ask it over and over again but are paralyzed to take action?

When an opportunity is presented that would change your life do you say…

  • “It sounds great, but I just don’t have enough money to get started.”
  • “How much does it cost to join?”
  • “Do I have to buy product every month!?”

Now I have to be perfectly honest…

I used all of these excuses when the first network marketing business was shown to me by my future upline.

I was so far in debt I saw no way to take advantage of the opportunity he was offering even though I desperately wanted to.

Are you here now?

If so let me share with you a book. This book allowed me to pursue the opportunity he presented and the one I use today so I could take total control of my financial life!

 The book, Taming The Money Monster by Ron Blue.”

It teaches you the basics of getting out debt and allows you to stop making the excuses and start building your life.

To succeed in Network Marketing required an investment not only in yourself but also in your business.

If you are thinking I can’t afford let’s talk about…

How To Become Debt Free?

In Chapter 7 of Ron’s book he covers the 5 steps to get out of debt.

So let’s get into it…

If you’ve read Robert Kiyosaki’s, Rich Dad Poor Dad he talks about the difference between an asset and a liability.

Ron also points this out and says “most people don’t consider either a home mortgage or a car loan as debt because they have become common place.

However, these are not assets they are liabilities (debt).

So the first step to getting out of debt is knowing what your total debt is.

To do this write down all your debt such as:

  • All housing debt
  • Food cost
  • Clothing
  • Transportation
  • Entertainment/Recreation
  • Medical
  • Insurance
  • Children
  • Gifts
  • Miscellaneous
  • Any other monthly expense you have

If you give to a good cause like charity, church, etc. write these down in a separate list because they also need to be added to the debt list.

Once that’s done

For me this was very difficult to do and required a radical approach that changed my life.

Now I had a good sponsor who had applied Ron’s book to his life.

Ron states you have to remove the temptation from your life.

So what to do…

  • Lay “all” your credit cards on a sheet of aluminum foil
  • Put them in the oven at 450 degrees
  • In just a few minutes, you’ll have a brightly colored mass of plastic
  • After it cools, hang it in a conspicuous place to remind you of your decision to stop going into debt

Well my sponsor just had me lay all my credit cards on a table and cut them into little pieces with a pair of scissors. Then he glued them to a piece of paper for me to hang them on the bathroom mirror as a reminder of the decision to stop going into debt.

Either way works!

Once you’ve determined where you are, as defined in step 1.

And stopped going into debt as defined in step 2.

The next step is to...

To develop a repayment plan you need to develop a solid budget. You can start by reviewing your living expenses from your checkbook or bank statement.

If you have never developed a budget there are tools like Personal Capital, You Need a Budget (YNAB), Mint, Money Dance, Calendar Budget, and Quicken that can walk you through the steps.

Or you can do it the old fashion way and go to your local office store and buy a ledger book.

The book should have at least 31 vertical columns (one for each day of the month) on a 2-page spread.

Everyday list all your expenses down the left side and list your income on the right. At the end of the month they must balance.

This is a critical step so you get a grip on your debt, living expense, and cash flow. And by not going back into debt you also establish stability in your budget.

Once your budget is developed you may find there is more month than money. If so you may need to take additional actions to get things in balance such as:

Why should YOU have a home based business to earn income?  

Watch this short video by Sandy Botkin a former Legal Specialist with the I.R.S. 

Most of all learn how to earn income from home therefore paying far less income tax so you use that income to become debt free.

Once in balance you can now begin reducing debt quickly by:

  • Making double payments
  • Increase payments as you reduce debt
  • Once a debt is paid off add that payment to the next debt

Also don’t do these they will make it worse:

  • Don't get a debt consolidation loan
  • Don't seeking a second full time job (Watch the short video, above, by Sandy Botkin a former Legal Specialist with the I.R.S. who lays out why getting that second job can hurt you financially.)

Finally, if you need to get counseling from a professional there is no shame in doing this…

But be cautious of counseling companies who charge you money to help.

In the book Debt-Free Living: How to Get Out of Debt and Stay Out by Larry Burkett (2000-01-02) he give details on where to find help if you need it.

There is an old saying “Don’t expect what you don’t inspect.”

It is critical you find someone you respect who will hold you accountable.

Then share with them your plan and on a regular basis go over where you are so they can hold you accountable for your actions.

When asking someone to hold you accountable, it’s not in the general sense, but in specifics such as are you making payments on the designated date?

Set a schedule of when you report to them and establish the length of the accountability period.

Remember, when you ask someone to hold you accountable, be honest about why you’re doing it and give them all the facts so they can help you stay on course.

My accountability partner was my first network marketing upline Terry and he was honored to help.

That done…

Any task requiring commitment should be rewarded.

So reward yourself!

As an example:

  • When you pay off your first debt, take some of the money and treat yourself to a special lunch
  • When the second debt is paid off, increase the reward by maybe going out to a nice dinner with someone
  • When the third debt is paid off it might be time to treat yourself to a weekend trip that you’ve wanted
  • When the fourth debt is paid you may buy clothes or furniture

Obviously, you don’t want to get yourself back in debt so these are done by using cash and pay in full.

The idea is to find a way to motivate yourself so you stay on course.

This plan I simple and it works…

This plan is how I overcame over $60,000 in credit card debt.

And there is nothing like the financial freedom that comes from being debt free!

But like anything else in life if you don’t get started nothing happens.

So if you are like I was and used the money excuses this plan can help you not only establish that business you are looking for but also free you financially for life.

And once you learn the lessons, there is magic watching someone you coach get free of the money monster, take advantage of your offer, and set a new path in life to financial freedom.

So get the book, execute the plan, and if you want a better life simply click here and I’ll gladly give you access to FREE Training on how to develop that home business you want without making all those money excuses.

If you enjoyed this post, please quickly do me a favor and share with others using the social media icons on this post.

I would also love to hear your comments below.

To Your Success! 

Larry Felder

PPS: If Your Upline Does Not Have a Step-By-Step Blueprint for Success, Check This Out (Unless YOU Already Have Too Many Leads) – Click Here For Instant Access.


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About the Author Larry Felder

I have two passions in life. First I teach Network/Affiliate Marketer and home base business owners how to establish a profitable online business. Second I provide advice on health and wellness and how you can live a better life. I provide training and mentorship for both.

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