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You Need Not Continue Suffering Due To Debts. Become Debt Free Fast

Updated on August 20, 2011

If you are one among the thousands of people who are suffering because of unmanageable debts, you are sure to yearn for a situation when you will be completely debt-free. But, considering your present situation, you may wonder if your wish will remain a dream or if it can be translated into reality. But, it is definitely possible to get out of this situation quite fast if you follow these tips.

- The first step towards accomplishing this big aim is to develop the right mindset. You should take a determined vow that you will go all-out for achieving this goal. Half-hearted attempts will not yield the results you want. Your desire should be so strong that you should become oblivious of all your other desires till you reach this goal. You should be ready to take the required action at all costs. Such a dogged determination can alone help you to tide over this pitiable situation.

- The problem with most of us is that we are afraid of taking this first step itself because we are afraid of failure. Another amazing truth is a few people are afraid of success also. A few others hesitate to take this first step fearing that they will have to make a lot of sacrifices. But, all these excuses are lame. The first excuse is unfounded because if you take the right steps, you are certain to succeed. The next excuse is baseless because success should be enjoyed and not feared, despite criticism from others. The last excuse is based on wrong premises because you need not do major sacrifices for succeeding in your attempts to get out of your debts. In fact, you can also "indulge" in some of your comforts but you should limit the "indulgences" to a fewer occasions.

- The basic and the most important point is that you should stop making further borrowings, whatever may be your situation. Some people borrow pay day loans to pay back their old loans. They do this because they may be expecting some money and they hope that the expected money will help them to pay back these short-term loans. Nothing can be more dangerous than this attitude. You should never forget the old adage that "there may be many a slip between the cup and the lip". The money you expect may not come on time or you may not get it at all. Unless the money is seen in your hands, you should not plan because you are already facing such a tough situation. Simply put, borrowing additional loans should never be contemplated.

- Debt management and debt repayment are possible only if you do budgeting for your expenses. You should know where your money goes. If you do budgeting and stick to it religiously, you can save a good amount month after month. Even if you save small amounts, that is also a good beginning. Even a mighty river starts only as small trickles.

- When you categorize your expenses, they come under three major heads. The first one belongs to the category of basic necessities. The second one is for comfortable living but you can definitely cut portions of them without affecting your life much. The expenses you incur on telephone, cable, gym fees, etc. belong to this category. In your present situation, you can not be lenient with the final category because these expenses are not at all necessary. They are incurred only to show off your extravagant lifestyle. By brutally cutting on the third category and making a few adjustments in the second and the first categories, you can make substantial savings and these can be used for paying back your debts. These savings should be deposited in a separate account and after a few months, you will be surprised to see how the amounts have grown to such an extent that you can pay off one of your big debts.

- But, while paying back the debts, you should prioritize them and pay off the debts with the highest rates of interest first. Of course, you should be paying the minimum amount due on all the other loans.

- You can make suitable modifications and improvements on your budgeting exercise so that you can save more and more. You can also look for opportunities to earn a second income. You have plenty of opportunities available on the Internet. If necessary, you should acquire new skills required for earning an additional income. The more you earn and save, the quicker will be the process of repayment of your debts.

- You did not get into this situation on a single day. It is the cumulative effect of all your mistakes. So, it is unfair if you expect instant results though you can liquidate your debts very quickly. But, if you make sincere attempts and follow these steps, you can come out of your financial problems sooner than expected.

- You can also plan to avail of a debt consolidation loan at a less rate of interest in which all your loans will be combined and made into a single loan for which you should be paying your monthly equated installments. This will save a lot of your money because the rate of interest on such loans is much less.

- Even after you repay your debts, you can continue your habit of budgeting and saving. The money thus saved will be useful in future because you may not know what is in store for you in future.


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