Everybody wants to get out of debt. Whether it’s student loan debt, car loan, mortgage or the worst debt of all credit card debt.
The entire world is living in debt. the economist has the global debt approaching 58 trillion dollars. this shows that the entire world has a debt problem. It has become something like an epidemic. So how do people get into debt?
We get into debt because of our habits. It is so easy to swipe that credit card. We get enticed by the shiny object syndrome. The world is driven by consumerism so it is important to control your urge to spend. Everyday you are constantly bombarded with advertisements. everyone wants you to buy but when you are in debt it is up to you to focus on your needs rather than your wants.
In this post I’m going to share with you 5 surefire ways to get out of debt.
Plan your debt
What kind of debts do you have? List all your debts. Which debts are the worst? Focus on paying off the larger debts. Credit cards tend to have high interest rates so it is in your best interest to pay these debts off first.
Come up with a plan to pay off your debts. Work out how much you need to pay each month to completely pay off your debt.
Use tracking software such as the mint.com app or quickbooks.com to track your expenses. There are also many other apps out there to manage your expenses so choose the one that is best for you.
Control your spending
Everyday there’s something new to buy. Whether its latest iPhone, the latest android phone ‚tablet, laptop , clothing, shoes you name it. You need to curb your spending habits. Find out what spending habits are and put restrictions in place to stop you from overspending.
When you see something you want to buy, ask yourself do I need it? instead of just impulsively buying. When you think about it do you need product that you bought? Will it benefit you in the long run? and is it helping you get out of debt?
Some people shop when they’re stressed. You need to figure out your triggers to stop them from controlling you.
Avoid financing your purchases, this is a debt trap. Imagine being in debt and financing more stuff. eventually Something’s has got to give. You will end up putting yourself into more debt. Buying things on hire purchase may seem enticing now but you may end up paying almost twice the cost of the item.
Also avoid using your credit card especially if you’re in credit card debt.
Examine if there is any way to reduce you monthly expenses.
Reducing your monthly living cost will allow you more money to pay off your debts. You may have to live frugal for a bit but you will have more cash in hand.
Another great tip is to control yourself when shopping online. It is so easy to get caught in financial abstraction online. This is because everything is so accessible. It is literally at your fingertips. This means spending becomes super easy to do.
I remember the days when you used to go to the mall to Window Shop. Nowadays you can this go online and get your eye full of things you want to buy. They make the deals so irresistable its almost impossible to say no. Also sometimes you don’t get what you bargained for. Because the product doesn’t meet your expectations.
Avoid taking on new debt
Unless you’re doing debt consolidation, do not take on any new loans. That’s like tying a rock to your legs while climbing out off the debt hole.
It doesn’t make sense to get another loan when you’re already paying off current loans. Also avoid taking on more living costs. If you live alone you might want to consider getting somewhere cheaper to rent. Maybe even consider selling some of your unwanted items to help pay off your debt. Avoid purchasing unnecessary expensive items. Don’t try to keep up with the joneses. Every body knows those people who are always showing off on social media. They may be flat out broke, you might not know it.
Observe this; the richest men in the world; bill gates, warren buffet even mark zuckerberg all dress frugal.
They don’t go about flashing their wealth. They are focused on more important things.
Make more money
If you’re in debt you might want to do the obvious and get a new job or a side Hustle. You can’t expect to pay off your debt where the just your salary. Making more money while keeping your expenses low is the way to go.
You should also be saving. Although you are in debt it is always wise to put aside money for emergencies. Life is unpredictable and anything can happen.
There are many ways to make money. You could consider freelancing. There are platforms such as odesk and fiverr . com that allow you to start an account for free and sell your services online.
Some people have even bought houses from money they have made from Fiverr. So it is possible to pay off your debts. You could also sell digital products on platforms such as clickbank.com, commission Junction or even eBay.
You could become an affiliate and sell other people’s products to get a commission. The possibilities are endless you just need to put your mind to it.
You have to make getting out of debt a habit. Remember spending is a habit, to break it you have to develop a new habit to replace it. Develop the habit of making more money and reducing your expenses. Do this and over time you will never have to worry about debt because you won’t have to borrow.
What do you think? Do you have any more good tips for getting out of debt? Share them in the comments below. Show me some love by sharing this post and subscribe to my mailing list for more great post like this.