HOW CAN I GET OUT OF DEBTS?

Question

FINANCE, DEBTS

Answer 1

Debts can become a stumbling block to our financial gowth, and can  take away our financial freedom.It can affect us in every aspects of life. It is important to undesrstand the consequences and to break away as soon as possible. Here are ways to help;

MAKE A CONSCIOUS EFFORT TO STOP BORROWING

This is the most important step. It is highly tempting not to borrow as "needs" might arise and you need to solve it immediately, but in order to help your debts decrease, it will take a great deal of discipline not to borrow, as one debt would link to another, causing you not to be able to meet up in the long run.

MAKE A LIST

Make a list of your debts from the biggest to the smallest, and start accordingly. Starting from the top will enable you save more, so that whatever remains you add to the other debts until you get to the least debts.

CREATE A REALISTIC BUDGET

This is another reason why we accumulate lots of debts, we want to add everything in the list of our daily welfare. In paying up debts, this is a period of  "gritting teeth, and padlocking pockets"- Meaning; until you finish paying up your debts, you can't spend unnecessary. You create a strict budget list and stick to it.

SPEND LESS

Spend less than you plan to spend.and throw any excess cash at your debts.

EMERGENCY FUND

Create an emergency fund account, after your you've finished clearing your debts. This is to help avoid borrowing and can only be used when an emergent situation arises. You should also not stop saving, as saving is the key to rising out of debts.