It is a stressful experience to be in debt. Whatever be your circumstance, if you borrow money/ take a loan, you are obligated to pay it back. Wouldn’t it be wonderful if all your debt just magically disappear? Here are some tips to get out of your debt easily.
- Make a realistic budget and stick to it. A budget tracks your income and your expenses and is crucial to get out of debt in a short period of time.
- Take a conscious decision to stop borrowing money
- Make a payment plan with automatic deductions
- Change your spending habits as you will be accumulating debt from poor spending choices
- Prioritise debt repayments. Make a list of all outstanding loans and then decide which of these to get rid of first.
- Seek help from a credit counsellor. It is a good idea if you are unable to tackle your debts on your own.
- Build a small emergency fund. It is difficult to get out of the vicious cycle of debt without a mini emergency fund to tackle any emergencies that arise.
- Stop using your credit card as this will keep increasing your debts.
- Involve all your family members/ dependents to get a clear picture of the overall outstanding loans, expenses and income.
- Learn to say, “No” and make it a part of your daily vocabulary. You should be saying it quite often when it comes to spending money.
