How To Get Out Of Debt... And Stay Out

CRC Credit Bureau Limited Created on: 27 June, 2021 Last Updated on: 27 June, 2021
How To Get Out Of Debt... And Stay Out

Consumer Debt is a common trend these days and with so many options to obtain credit loans and post-paid products and services, it is very easy to start a love affair with debt. However, just like any affair, getting out of debt can be very tricky.

Let’s face it, being completely and totally debt-free in this modern age is almost impossible. As you grow older, more responsibilities arise, and with more responsibilities, come more bills and unexpected expenses. The trick though is to keep your debt overhead as minimal as possible. So here are some tips on how to get out and stay out of debt:

  • Pay more than the minimum on any current debt you carry: It can be difficult, but you must make the effort. It could be credit card debts, business loans, microloans, personal loans, or any kind of loan. Paying more than the minimum not only helps you save thousands on interest but also speeds up the repayment process.
  • Having multiple streams of income: Earning more money will help settle your debt(s) as quickly as possible. It could be selling products online, learning a new skill for entrepreneurial purposes or offering a service for example a virtual assistant for small business owners. The key is, to take that extra money you earn and use it to pay off your debt.
  • Drop expensive habits and live within a budget: If you are in debt and you constantly borrow to meet up with your responsibilities or pay bills. Then you need to evaluate your spending habits. Review your daily expenditure and then decide what purchases are necessary or not. Cut down on expenses as much as possible. There are always options/cost-effective means to achieve the same goals.
  • Don’t spend that bonus: Maybe you get a raise, or you come across some unplanned bulk money. A percentage/all that extra money should be used to pay off your debts as much as possible.
  • Stay away from temptation: Everyone has a guilty pleasure and we may be tempted by something. The best way is to avoid it all together, when you are trying to pay off debt. If that online page that sells those gorgeous items is your weakness, block it!

It can be easy to continue to live in a cycle of debt but when unexpected setbacks happen, like losing your job,reality sets in quickly.  Living from paycheck to paycheck is not ideal and no matter what kind of debt you are in, please know that there is a way out- it just takes discipline. Being debt free is one of the ways to live the kind of life that you truly want, in peace.

Do you want to keep an eye on your debt and take charge of your financial life? The first step is requesting for your credit report and you are on your way to financial freedom. Click to get started today.