How to pay off your bad debt?

Dear readers,

I am recommending to use the Rule 10:70:20 to overcome your bad debt? Below is the steps to implement the Rule 10:70:20.

Step 1:
Invest 10% of your monthly gross income without fail into an emergency fund until the amount reach 3-6 times of your monthly gross income.

Step 2:
Spend only up to 70% of your monthly income to pay off car loan, housing loan, personal loan, existing and still can use credit card's minimum payment, petrol, telephone bill, utilities bills, groceries, daily expenses, etc.

Step 3:
Use 20% of your monthly gross income to pay off your oustanding loan that had turn bad. Choose to pay the most expensive first and then choose to pay the smallest outstanding loan.

Hope that the above Rule 10:70:20 can improve our financial situation. Don't forget to give yourself a cople of years to implement the above rule.

There is no magic and nothing is impossible. I welcome comments and enquiry on the rule.