How to come out of debt with little stress

March 18, 2014 | Filed under: Personal Finance | Author: Hope Ikwe

Debt is debt no matter what excuse is given for incurring it. Sometimes people term debt to be “good debt” or “bad debt” depending on their intentions. If money is borrowed for investment or business ventures it is called a good debt and when it is borrowed to solve personal problems it is called a bad debt.

To so many people,  it is impossible to be debt free and hence they hold on to the notion that debt is part of human existence and even support this idea with the fact that “if government in its capacity could can owe who is an individual not to owe “?

Coming out of debt and remaining out of it entails hard work. The following steps should be put in consideration to be debt free.

•Resolve to pay up your debt: Achievements begins with resolutions, this also applies to debt payment. Many people find it difficult to pay up their debt not because they have not gotten the money to pay up but due to a habit they develop overtime and also due to the feeling that the debt they are suppose to pay up is some sort of free money they are giving to their creditors. To get out of the debt trap, tell yourself that the debt you are about to pay up is a money you have used to meet your needs when you thought you desperately needed it and not some free money you are doling out to your creditor.

•Device a means to pay up your debt: You should device a systematic means to pay up your debt. Know your attitude towards money and debt and device a means to pay up. If you are the type that find it difficult to release cash, then you can pay through online money transfer. Negotiating with your creditor to pay bit by bit can also solve this debt problem.

•Treat your personal finance as a corporate finance: When you treat your Personal finance as a corporate finance, you will be able to stay out of debt because drawing up a budget to balance your income and expenditure will be paramount to you and you will better manage your finances and stay out of debt.

•Trim and track your spending: Trimming and tracking  your spending will help you stay out of debt. When you cut down on expenditure and ensure that you account for every dime that comes in and goes out of your purse hardly anything can plunge you into debt.

Hope Ikwe