From Yahoo Finance: 2025-05-12 12:31:00

Ramit Sethi, author of “I Will Teach You To Be Rich,” shares strategies on becoming debt-free in a video. He emphasizes confronting the truth about debt and creating a plan to tackle balances. Sethi advises tracking all debts, including balances, interest rates, and minimum payments, to effectively work towards financial freedom.

To start, list all debts to understand the total amount owed and create a plan of attack. Interest rates, especially on credit cards, can hinder debt repayment. Sethi recommends starting with visible debts like credit cards, mortgages, and auto loans, to begin the journey towards financial stability.

Reviewing your credit report can help identify forgotten debts and correct any errors. Fixing mistakes can boost credit scores and improve chances of securing lower interest rates in the future. Sethi suggests using AnnualCreditReport.com to access free reports from major credit bureaus annually for a comprehensive financial overview.

Read more: ‘Ignoring Your Debt Doesn’t Make It Go Away’