Everyone wants to be debt free as soon as possible. A house will usually cost you two times its original purchase price over a 30 year term. Financial minds have made it easy to pay the minimum payment on security interest and even though we can often pay more, we choose not to. To successfully repay debt one needs to adopt the approach that the term is 20 years, and make payments based on this repayment goal.

To achieve this you will need to review certain behaviours: If you charge a medium and do not clear the amount fully every month before the payment date, it means you are paying a much higher interest rate. Spend income on leisure, entertainment and recreation only if you have first saved eight percent of your net incomes and met all your fixed and essential costs of living. This is a strategy that will see you becoming security interest free and faster. Follow a working budget and calculate forward your cost of living. Identify large one off’ planned expenses, or accumulate extra capital to meet unexpected expenses.

Use your cash flow surpluses, capital and equity to purchase investments and begin your retirement net worth accumulation strategy. Investments may generate additional cash flow, income and tax rebates that you can use to accelerate personal debt repayment. Behavioural change must take place in order for you to change the way you spend and save money.