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How to Achieve Debt Freedom?

March 12, 2018

Being in debt is a hit to the household from more than just one aspect. It is hard living in debts. No person got into this difficult situation because they wanted, so everyone is trying their best to achieve debt freedom.

 

Not everyone, however, is able on their own to handle the pressure of owing money. That's why some of us need a helping hand to show the right path to becoming debt free. Here are a few ideas on how to handle your debts.

 

In order to lower your debt, you need money. This is obvious, right? So how to find more money and cover your debts? The first thing you need to do is to sell assets that will provide you with a lump sum. This you can use to pay some of the bills. For example, if you have two cars, sell one. If you have a car that's worth $20.000, sell it, buy another for $10.000 and use the rest for close some of the loans.

 

Always pay your bigger debts. This way you'll achieve the so-called "snowball" effect. When you close some debts than you can use that money to cover the other ones. The more debts you close, the more money you have for the others and this is similar to a snowball rolling down the hill, it just getting bigger and bigger.

 

Another idea for getting closer to achieving debt freedom is getting another job. You need every income that you can get. Sure, this will affect your personal life, but think about this as a project that will not last forever. You can work at another place for a year or two until you get the snowball rolling, and then you can get back to your previous lifestyle.

 

Repaying debts is hard and there's no question about it. A lot of people battle both the money debts and the depression because the feeling of being lost and unsuccessful overwhelms them. Before you even get to a stage where depression hits you, try to stay positive by doing some simple things that will show you that you're moving forward. For example, every time you manage to repay a debt, treat yourself with something. Buy yourself your favorite chocolate, or have a drink of some fine whiskey. This way you'll motivate yourself to work even harder knowing that one day you'll be able to afford these things on a daily level.

 

Reading the last paragraph, have you thought "I treat myself with chocolate every day? If yes, then this is another advice. If you want to go toward debt freedom, you have to cut some of your favorite things in life. Expensive food, travels, enjoyments that cost. It might seem like nothing buying a $10 chocolate, but if you do that every day then you're spending $300 on chocolates every month. You can you that money more wisely.

 

The last and most important advice is, never hold unused money. Sell your properties and assets, work more and you'll be on your feet in no time.

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