3 Step Action Plan To Slash Your Debts And Pay Off Your Mortgage

We all have our dreams and ambitions for a life that is perfect and happy

, whether its having our own vineyard or a house in the sun. The reality is these will only ever be dreams until we start planning and taking action on these plans. Many people use the excuse that without the money these dreams will always be out of reach. However, there is always a way to turn your dreams in to reality and it starts with sorting out your finances with these 3 steps:

Step 1: Control Your Finances

Many people feel this is too difficult or beyond them, however, all it takes to get started is a well thought out plan. As the saying goes if you dont know where you are going how are you going to get there?. Consider this plan as your financial road map. For example, in 5 years I will have my own farmhouse in the South of France. The plan will lead you step by step to your destination. For this to work you need to do the following:

a) The goals you lay down must be what you really want, realistic and achievable.

b) If you have a partner they also must be on board and committed to achieving the goals.

c) Goals that are made in your head are still dreams. Once you agree on them write them down on paper or type them in a special file on your computer and make a copy of it. The act of writing it down will increase your intentions and commitment.

d) Do not make your goals to rigid because we can never know what is going to happen in the future. They must be adaptable to change.

e) It is essential that you review your goals and monitor your progress. This is essential for long term goals which need to be broken down into mini signposts that lead to the achievement of the main goal.

Step 2: Dump The Debt

Once you have built your road map you need control of your finances. If you have any debt whether it is loans or credit card debt then, you need to focus on these as a priority. These types of debt charge the highest amount of interest and need to be controlled and cleared to make your goals a reality.

Make a list of all the money you owe and the monthly payments. Put them in order of importance i.e. those debts with highest interest charges as mentioned above. Next thing find out how much income you have left after your expenses and debts have been paid. Use any surplus money to pay of the biggest debts and do this until they are cleared. With each debt cleared tick it off and move onto the next one until all check boxes are ticked.

Step 3: Paying off The Mortgage

Your mortgage is probably your biggest expense if you own your house. Therefore, it is prudent to look for the best interest deals on a regular basis. Even a small deduction on the interest rates can make a huge difference in reducing the time and amount you owe over the long term. If you have surplus money each month then use it to pay off your mortgage. By putting in extra $50 or $100 will enable you to pay off your mortgage a lot sooner.

by: Hazel Blackthorne

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