How to get rid of debt

Being in debt is not pleasant. When the credit providers contact you over the phone, and you tell them you cannot pay them, it is one of the most humbling and haunting experiences in a person’s life. Even years after the event you will remember the feelings of helplessness that washed over you as you confessed your inability to pay your debt.

There are simple ways to help you get rid of debt.

Stop using debt to supply your means of life. Decide to stop borrowing money to support your wants. You should instead cater to your need. You do not need to drive a fancy car that you cannot afford. Signing up for credit cards that you do not need or financing new furniture when your old ones are still durable should stop. Focus on the debt that you have and develop a strategic plan to pay it off as fast as possible.

Establish an emergency fund as soon as possible. Many unexpected things can happen in our lives. Things do not always happen according to plan. When emergencies appear, then you will be able to deal with the financial repercussion instead of running up more debt.


Create a budget that will help you to keep track of your income and expenses. Then stick to your budget. It is crucial to have a budget if you want to get out of debt in a short period. Creating a budget will help you to determine if you will have a surplus of money left to pay off on your debt obligations.

Try to earn extra cash. If you work shifts, then try to arrange for more working hours. Get a second job or even a part-time job to supplement your income. Make the number of your expenses less. Do not pay for gym membership, and you can exercise at home. Start jogging or cycling. If you pay for subscriptions, cancel them. Give up the additional conveniences in life. Be committed and willing to make sacrifices.

Start to pay off the small debts and try to pay more money towards the debt that has higher interest rates. Either way, you will save more money in the end. Set reasonable targets as to when you aim to repay your debts.

When extra money comes your way, take the cash and pay it into your debt immediately. Paying all surplus monies into your debt will help you eliminate the debt faster. Sometimes a tax refund will come your way or an inheritance, pay your debts and spend wisely.

Speaking to your creditors to renegotiate terms of payments is an excellent start to becoming a bit more independent. If you have a hard time to get out of debt, it would be good to seek debt counselling. There are professional individuals trained to help you achieve your goals.