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How to Terminate Debts

September 13, 2018

It's not easy living a life with debts. Once you get into debt trouble and ignore the fact you're owing money, the problem only deepens. Before you realize you need to do something, things get too complex and so hard to handle that it almost seems impossible. However, nothing in this world is solution-free, and getting out of debts is also something that is solvable. So, how to terminate debts?

 

First of all, you need to make a list of both your earnings and your spending. The first moment you finish it, you'll surely see that the column with spending is much longer than the one where your income is written. This is normal, of course, if it wasn't like this, you won't be in debt. The second step you need to make is to eliminate everything from the spending column in order to make more space for terminating the major debts. Cut everything that is absolutely unnecessary. Cigarettes, alcohol, chips, chocolates, all these are not a priority. They are a luxury. You might think that $50 a month for cigarettes is not a big problem, but when you eliminate all the luxuries you'll see that a lot of money is thrown in the wind. This money can be used for something more important.

 

Then, prioritize your debts. You can't ignore the credit card debt because it will only give you more trouble later. This is on top of your list. You must transfer all money from the cut section to this. After a while, you'll see how the debt is getting shorter. When you close your credit card debt, you'll have a lot of money that you're not spending for the credit card to be used for something else. Every time you close one hole, the others will be easier to handle.

 

If simple cutting the luxury is not enough, you need to sell stuff. Sell everything that's not necessary. For example, if your car is worth $15.000, sell it and buy something less expensive. The rest of the money can be used to cover one debt hole. Also, you can sell some of your property. There's an excellent sell and stay deal that's very popular at the moment in Australia and around the world. With it, you sell your house or apartment, and you become a tenant in your own place. You end up with a lump sum that can be used for many purposes, and you don't need to move out or spend money to look for another place to live.

 

How to terminate your debts seems like an easy job written down on the screen like this but we know that it's not this easy. How to terminate your debts is easy only in theory, while in practice it takes a lot of determination, hard work, and information. These are the first and most important steps. The rest is up to everyone. Just remember, if you put your mind to it, you can do it.

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