How to Live a Debt Free Life.
How to live Free from debts
There are lot people out there fall into debt problems is due to overspending and also laziness’ to go out to work.Overspending without knowing how much money is being spent and how much money is coming in. Some people fall into debt problems due to the failure of their business. Further, having gone through all these, when you decide to get advice from debt management companies they always charge high fees and in that you should seek an affordable solution like approaching charitable organizations which are specialized in these matters, and also they do not charge high fees.
When we live without debts, we will have peace of mind, there will be no need to be in fear of the bills.
To achieve this debt free life, we need to have to set a personal budget and keep our expenditure pattern according to that budget. Depending on the nature of one's job and the family expenditure, one has to come up with a perfect family budget in order to have some surplus cash available for the repayment of debts, it is important that husband and wife sit together to work out and agree to the family budgets. Both the husband and wife of a family have to consult each other about which expenditure is important and which is least important and has to cut down expenses accordingly. This will serve as a helping platform to create an action plan, determination and discipline to pay back the loans. It is also important that you should not get further loans to make up for your expenses. It is also an important aspect that you should find ways to improve your income, to help you plan your purchases. You should close all your credit card accounts and look into getting advice for debt consolidation or bankruptcy. The debt management companies out there will be able to advice on the best plan to suit your .circumstances.
You can ask the company to negotiate with your creditors to accept a minimum payment from you, or they can put you IVA plan as this will help you to come out of the debt sooner, but you will have to make a higher monthly payment.
Am I really debt free?
Mortgage debt sometimes can be considered as a good debt, as part of that payments will be saved as your investment for your future. If you are paying monthly rents you will be completely loosing that money. So, you are debt free as long as you have paid off all the other loans. On the other hand, we need the use of credit cards for some types of purchases. such as buying things on internet, the solution is to have a control over our daily purchases with the help of a budget. If we need to have good credit history we have to make use of the facilities available and alternatively have no credit history is also bad.