How to Get Out of Debt

How to Get Out of Debt:

Being in debt is bad.

Being indebted to someone means you are a slave to them.

Being in debt can be a stressful experience. No matter what your situation is if you borrow you are expected to pay it back.


Get out of debt is possible. It can be a hard road and easy one as well, but it requires a further commitment from you.  No matter the numbers of articles you read on “how to get out of debt” if you are not committed to actually taking steps then all those knowledge are all for nothing.


How Do You Free Yourself from Debt?

What I’m sharing here is how I got myself out of debt. These are what I did back then;

  • Write down total amounts you are owing and who you owe them to. This should be your first step in getting yourself out of debt. Be honest with yourself, make a list of the amount you are owing.


  • Re-arrange your list: You are probably thinking why do I re-arrange? I thought to pay off the debt with highest interest rate first, helps in getting out of debt quickly. I was concentrating on the debt with the highest interest rate. Months after months, I was still finding it hard to pay it off because it was above my budget. The lesson here is, when arranging your list, make sure you start from the smallest debt to the highest. When you start by paying off the smallest debt first, it gives you more confidence and builds momentum. It makes you stay within your budget. Don’t bite off more than one can chew!


  • Cut off credit cards purchase: Truth is when we shop with credit cards, sometimes we make impulse purchases on luxury stuff. When we spend cash, we tend to have a proper shopping plan, and there’s a sense of awareness cash creates with our spending. It’s tough without those credit cards, but you need to do without them. Your goal of becoming debt free will never be accomplished as long as you keep using credit cards. Do not buy it if you cannot pay cash for it!


  • Establish an Emergency Fund: Believe it or not, emergency do happen. Remember we don’t want credit cards in our life while trying to get out of debt. When these emergency does happen, you need a way to pay for it. It’s wise to have an emergency fund in the bank you can rely on in the case of emergency.


  • Increase your Income: This was the big winner for me. Do research on what you can do to earn extra cash. This is 2016, so many opportunities exist to make extra cash especially on the Internet. If there is a need to improve your skills, then do it. Earning extra income will go a long way in clearing your debts and increasing your revenue. You could as well invest in building your own income producing business. There is good and bad home based business opportunities. Spend time in quality research and invest in proper training. Do this and I’m sure you will come out a winner and live a debt free life.


Be focused, Committed and Discipline to the steps above and you will be a step closer to getting out of debt.