How to Get Out of Debt


Debt is a common problem of many people nowadays. Debt can destroy relationship, family or friendship. If one person is in debt, he is just like a slave of his debt. No one wants to be slave of somebody or anything. Right? However, that’s the sad truth about the situation of a person in debt.

I believe many people have debt. It is a part of his or her financial journey. Even big, multinational companies have debt. Moreover, governments also have debt, can be internal or external debt. As a matter of fact, USA took the number 1 spot of highest debt for all the countries in the world.

Actually, sometimes we cannot avoid to have debt especially when we have no source of income or job. I remembered before I started to work, I borrowed money from my relatives to have money for my job application. Also when I was a student, my mother frequently borrowed money for my allowances and school needs.

Debt has two types: good and bad. Good debts are those debts that people or companies used to finance their businesses or projects. Good debt is borrowed to be used in making more money. On the other hand, bad debt are those debts that people use to buy the things they want like car, gadgets or appliances. This kind of debt will not make money in any way.

Being in debt is a choice, you do not need to blame other people why you are in debt right now. You must take full responsibility of your own actions. The good news is that in this article, I will show you how to get out of debt.

I was also in debt in the past but I managed to get out of it through discipline and grace from God. In order to get out of debt, you can consider to carry out the following tips:

1. Make a plan on how to get out of debt

Making a plan will help you to focus on debt elimination. Without a plan, it will be hard to pay debt regularly. The best plan or strategy here is to pay those debt with high interest first.

It is the high interest that gives heavy burden. Shoot first debt with high interest, followed by the second, third and so on. You can use spreadsheet to list all of your debt with the debt amount in one column, interest on the other and payment amount on one column.

Payment amount can be weekly or monthly depending on when you receive your salary. The point I want to make is to pay debt in regular interval so that you will get out of debt faster.

2. Start frugal living

Frugal living will surely help a lot to get out of debt faster. Frugality is not a common or good word for most people. Some people thought it is becoming greedy or not enjoying what you have.

I believe frugality is a lifestyle to be learned by all of us. It is not withholding things you enjoy, it is only choosing wisely what you really need.

You can still enjoy life even if you are frugal. Actually, it is better to be frugal than an impulse buyer. What do you think?

3. Keep on your budget and control expenses

Budgeting or planning how you spend money will certainly boost your way to get out of debt easier. If you keep on your budget, you can save little by little so in the end you have extra money for emergency needs.

You don’t need to borrow anymore because you have extra money to take care of the unforeseen events in the future. In making a budget, list all of the necessary things you need to buy and then survey where is the best store to buy from.

4. Make more money

If you are still short on the money you have to pay for your debt, you can think of ways to make more money. In this website, I have some articles on how to make money online. You can try to do what I am suggesting like creating a website or blog.

Although, it is not easy to make money from blogging, it will surely give you the chance to earn more than doing nothing at all. You may also try to sell your stuffs you don’t need in Ebay, Craiglist and Sulit.

Getting out of debt is not easy, in reality, it is hard. Discipline and good planning are the keys to get out of debt. If we do not have the discipline to pay our debt, it will be very hard for us to get out of it.

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About the Author:

GilGil Tenorio is a blogger, a husband, a father, and an active Christian. He likes playing guitar, C.S. Lewis, Plants and Zombies and NBA. Follow him at Facebook, Google+, YouTube and Twitter. Thanks!


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