Don’t you wish for a debt-free life?
A life where you are free to buy whatever luxurious item you want without ever worrying about that wretched debt that you once accrued.
Getting out of debt is not an easy task. Even better, don’t get indebted in the first place. But that isn’t possible if you want to get a professional education. Universities alone charge fees in thousands. An average university in the USA offers an MBA for $60,000+ that is what most people don’t earn in three years of service.
So, the BIG QUESTION is, how can people live a debt-free life?
The answer is PLANNING, CONSISTENCY, DEDICATION, & IMPROVISATION.
We have prepared a complete plan about how you can become debt-free in the next few years if you start following these tips religiously.
What Actually Is Living Debt-Free?
Debt-free living means living without fearing that you have to pay a specific limit of amount to the government/banks/lenders on a regular basis from your hard-earned money.
The good news is that there are many ways to achieve complete freedom from debt. It all depends on your lifestyle.
Tips for a Debt-Free Life– Make a Plan
Let’s start with the basics.
According to a study by CNBC, less than one-third of Americans have a plan for their future. This means not many of them to have any solid plan of how to pay their debt back. That’s why it is crucial that all these students need to have a plan.
Similarly, if you have another type of loan on you like mortgage, car, or even medical, ask yourself, WHAT IS YOUR PLAN OF paying it back?
If you don’t have a plan, start looking at your finances. Segment your earnings into three portions.
- Your expenses
- Your savings
- Your repayments – these are the loans that you will have to pay
Don’t buy anything BIG until you have paid your debt. If it is too important to pay, ask yourself – does your life depend on buying that product? If so, buy it. Otherwise, PAY DEBT!
Live below your means
Sounds easy, right? Well, Americans spend a lot. Another report states that 25% of Americans have nothing saved for their retirement. This is alarming if you want to repay your debt, you need to save that amount!
The best way to do that is by living below your means. This means, don’t buy that extra expensive meal. Don’t eat out each day and cook your food. Don’t throw irrelevant parties. And, don’t go outing at expensive rates. You need to be saving more and spending less so that you can repay your debt faster.
Learn How to Make More Money
If you are trying to repay your debt but don’t earn enough, maybe it is time to get two jobs.
More work = more pay
So, learn to find a way to do more jobs or to earn more from your current job. There are many ways available for students to make a decent income, and some of these ways are available online such as freelancing. It all depends on how dedicated you are about EARNING MORE MONEY to pay back your debt.
Remember, if your current income can’t cover your expenses, it won’t cover your repayments. It is just like sitting in an empty room and having a pack of dry beans. Even if you eat a single bean each day, the pack will one day get empty. So, find out how to get more beans!
Make garage items valuable and sell
Some people are making a killing by selling garage items on sites like eBay, Etsy, and even Amazon. If you have some similar ideas, why not try that?
It is always better to get more cash so that you can pay your debt easily. If you don’t have a garage, you can always buy garage items for peanuts from your friends or family members, polish them or fix them and then resell them online. Many people in your state would be willing to buy them. You can even charge them a shipping fee if they live in another area or city.
In the end, you will be earning more profit by doing simple tweaks to a product. Now use that money to pay back your debt and be free.
Let Go of your Credit Card
The reason most people fall into the debt trap is that they keep buying unnecessary items that they don’t need from places that they don’t want to visit. There is a medical term for it: Shopaholic. This means these people can’t get rid of shopping. If you are one of these people, the best way to stop yourself is to disable your credit card.
If you don’t have a credit card, you will not be able to buy any product no matter how tempting it is. This is the only way to pay back your debt faster.
Get Help from Debt Consultation Agencies
There are many debt counselors that can help you create a proper plan about how to repay your debt. Most of these are certified counselors who have either spent time in government, in high court enforcement groups or a debt collection agency. They have observed debtors very carefully and know what things put them in the debt trap. Since they are professionals, they can advise you in the best way possible about how to get out of a debt trap. They help people in all legal matters related to debt collection, debt trap, and debt advice.
Don’t Fall in Debt Trap Again!
Finally, once you are out of the debt trap, don’t fall in again! Even if you have to buy a house on mortgage, THINK TWICE.Can you pay back the debt in time? Is it indispensable to buy this property on debt?
Remember, debt can wreak havoc in your life if you are not too careful. You can even go to jail if the debtor files a court order against you, and you default on it. In that case, the government is entitled to take all your possessions from you to cover the loan amount.
Author Bio: Michelle Joe is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences, and express herself through her blogs. You can find her on Twitter, LinkedIn, Facebook