Jun 24, 2008

Simple Steps in Getting Out of Debt


Everyone likes to be free of debt. Imagine that…no more sleepless nights over credit card loan balances and no more threats from collection agencies. Here is a guide to help you get out of debt in time.

Be firm to yourself to spend less than what you make. Grasp the reality that you cannot pay for it today, in other words, you cannot afford it.

Minimize your cards. Out of all your cards, just choose one or two major credit cards with the lowest annual fees and interest rates. Resolve that the cards will only be used in cases of emergencies. Make sure you don’t bring your other cards always with you to resist temptation, or if possible, do away with them. Just simply cut the cards once you are through paying them in full.

Be sensible. I suggest in budgeting your financial matters, a big portion of the budget goes in paying off the bad debts. But make sure that you don’t miss any payments on your other obligations like your house mortgages, car loans, and other credit accounts.

Be happy! You should celebrate once you are done with your bad debts. In this way, you will be able to budget your finances worry-free already and with lots of room for savings in the future.

I think these are all the simple steps that I could think of, based on my experiences as a borrower and a payer at the same time.

Feel free to suggest some more steps. I think it is nice to live a worry-free life, don’t you think?

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