- Personal Finance
How to get out of debt? Easy ways!
‘Rather go to bed with out dinner than to rise in debt.’ – Benjamin Franklin
I could hear the palpitations of my heartbeat when I heard the telephone bell ring. I dare not pick it up as I was terrified that it might be the man who had loaned money to us. There was a period in my life when I was knee deep in debt. I had fear in my heart always and my mind cringed with self pity about my plight and I would consider myself as the most unlucky person in the world.
Our spending was restricted as most of the money went to pay the interest and our relatives closed the door on us as they feared we might approach them for financial help. It was then I knew the awesome power of money and I also learned an essential lesson. Are you wondering what lesson I learned? Stay out of debts!
What are the repercussions of debts?
- You lose your peace
- You lose your self esteem and self respect
- You do not have money for the essentials
- The interest you pay exceeds the amount you borrowed.
What should be done to stay out of debts?
- You should live within your means.
- You should budget your income.
- You should only buy things you need.
- You first spending should be savings.
Be careful in your spending
You should always spend judiciously. When you let loose your hard earned money, you struggle to make both ends meet. It is true that the market is flooded with tempting things which are status symbols. But status symbols should not make you a pauper. It is always better to save and buy the things you want than to swipe your credit card and get into debt.
Do not borrow
Do not borrow for spending lavishly and you will regret it afterwards. Instead of borrowing, you should make efforts to live in a sensible way, cutting all your unnecessary and thoughtless expenses. Think twice before borrowing money as the interest you pay can eat up your budget and leave you in lurch for the basics.
Frank discussion with your family is a must
Talk about your financial problem with your family, and tell them that the stringent measures you have taken will be for a short period of time and they can enjoy life when all debts are cleared. Budget your salary and save money for the financial security of your family.
Do not eat out often
Occasional eating out is fine, but if you make it a habit, it will prick a hole in your purse. Home cooked foods are lot cheaper and healthy too. Pack homemade lunch to your work and you will be pleased by the money you save.
Do not be a fashion freak
If you are too fashion conscious you feel your dresses are out of fashion after a short period of time. You have to shell out lots of money to keep in trend and this is another loophole through which your money drains. Be well dressed and do not be too fashion conscious.
Public transportation is cheap
Using two wheelers or car for nearby shopping is a big ‘no’. You have to manage a big fuel bill if you use your car frequently, and with the exorbitant fuel prices it makes inroads into your budget. Make it a habit to use public transportation to your work place and you will see some neat money piling up.
Are you a computer savvy?
Are you very proficient in computer? Then you can make extra money working from home. If you are technically sound, computer can provide you with lots of money as there are many money making opportunities throughout the internet.
Say goodbye to credit cards.
Do not use credit cards unnecessarily as they are the main culprits in giving you a false feeling of wealth. When you pay cash you will be judicious in your spending. Do not borrow from your credit card to repay your loan as you will be jumping right into the frying pan. Polish off your loan at a steady pace and if you are patient and firm in repayment, you will be amazed to see your debts melting away.
Budget your income
Make a budget of your income and stick to it. ‘Do I have to budget. Can’t I spend money as and when I like’ is a question that you ask yourself. Can any country survive without a budget? Can any big company do away with budget? They cannot! So you too should budget your income. It is then you know how much you have to save, how much you should spend and how much you must allot for essential payments.
Do not approach the commercial debt companies as it will only provide you temporary relief and you will be caught in another swirl of heavy debts with even more heavy interest rates.
Debt.n. An ingenious substitute for the chain and whip of the slave driver.’ –Ambrose Bierce
Do not brood and make yourself miserable thinking you have done a foolish thing. It is true you are having been ignorant in your dealing with money; you should realize your mistakes and decide emphatically never to get into debt ever again as it is always a very lonely world when you are financially down.
© 2011 mathira