What do you consider “debt free?” Does being debt free include having no house payment, no car payment, no student loan, and no credit cards? Or are we just talking about the miscellaneous debts like credit cards, medical bills, personal loans, and collections? It’s all debt, but some debts cost us much more than others.
Many people believe that in order to become debt free you must close or stop using your credit cards. While that may certainly help you, it is only a part of the answer. To become debt free what we need to do is have a plan for making, saving and spending money.