get out of debt

Get out of debt with these 5 sure fire strategies

get out of debtEvery­body 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.

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