We all take debts in our life at one point or other to meet our financial needs. Taking debts is not a problem but failing to repay them, most certainly is.
Learn more on how you can solve your debt related problems and lead a debt free life, before you find yourself helpless coming from the swamp of Debts!!!!
Don't Ignore, Write it down:
The first and foremost thing to do while in debts is to acknowledge that you are in debt. Sit and write it down.
Mention all the debts you have taken and make a list with the ones having highest interest rates first. Prioritize how you want the pay your debts- with the ones having highest amount or the ones you can easily pay. I would personally suggest, pay the ones with highest interest rates, so that you pay less interest in the long run. Or if you are the other type who enjoys to clear their debts in terms of debts left, do that. Either way can work. Just continue to do that.
Stop adding more debt
The important thing to do while dealing in debts is to avoid more debt. Try not to take any more debt, unless it is very essential. Just imagine, you are digging a hole, you take out two shovels of soil and throw back 4 of them. Will you be able to do that? Obviously no. So, while trying to get out of debts, make sure you make it a point not to take more debts.
Tell your friends and family.
This might be sounding odd. But the moment you commit that you are in problem, your mind will start working on that one. You will be consciously working on that. Also, your friends and family can help you with this. In such times, their support is very important one.
Track spending and identify areas to cut back.
A budget is not really hard to follow. You don’t need a sophisticated software to plan and prepare your budget. Just take up a pen and paper, make arrangements for your daily needs and electricity, groceries bills. Then make up your miscellaneous expenses. These are the areas, where you can look to cut out. Spending less on eating outside or watching movies won’t hurt you much.
Yes, need to stop saving. Not that you should not have emergency fund, you need to cut back your savings and utilize them for paying your debts. While in debts, the interest rate you are paying for the debts are much higher than those you would get on your savings. In a way, you are hurting your prospects in a long term. If you are saving and paying minimum repayments on your debt, it will take a long time to perish. Instead, attack your debt aggressively and try to clear them first. You will be saving in the long run.
Yes You Can!!!
Like everything else in life, getting out of your debt is heavily dependent on your attitude. You must have the ‘Can DO’ attitude. Don’t give yourself into the victim’s mentality. Stop having self-doubts and attack the debts from the front, until they are gone!!!
So, now you have got everything you need to get rid of your debts. Stick to your plan and see your debts disappearing in front of You!!!
Learn more about the 9 financial mistakes we make.