Being in debt sucks and can be extremely stressful, however with determination and discipline, there are some simple and effective ways to get out of it. Here are four ways you can get out of debt.
Determine the amount of debt you have
Rather than ‘bury your head in the sand’, look at the reality of the situation, go through account statements etc. and be sure of how much you owe. If your total debt seems high, just remember that from the day you make up your mind and start paying off your debts, it really can only go down from there.
Decide on what to pay off first
You need to ‘strategically attack’ your debt and to do this you must first prioritize the pay off of your debts. This prioritization should be based on the time frame you have and the interest rates (if any). If there are interest rates, then it’s best to pay off the debts with the highest interest rates first. Prioritizing the pay off your debts will make it easier to come up with an effective plan to get out of debt.
Get rid of temptations
You definitely don’t want to be incurring more debts when trying to pay off present ones. Consequently, you should do whatever you need to do to ensure that you discipline yourself enough to resist falling into the ‘debt temptation’ again. If you have to get rid of all your credit cards and stop using them all together, then you should. If you have to ask friends to turn down your request to borrow money from them, then do it. Basically, whatever you need to do to resist the temptation to borrow should be done promptly.
Consider your hidden income
Hidden income more or less has to do with cutting the costs of everyday bills and items (you probably never thought you could save money on), where and when you can. Saving money on these everyday bills and items can easily help to free up more cash towards paying off your debts. Challenge yourself to do this and see just how much you can put together for your next debt payment. It always best to ‘wipe out your debts’ so you can have your financial freedom.