7 Sure Ways of Becoming Debt Free

Are you tired of scheming lies every time your phone rings, because you have no money to pay off your debts? Do you always feel like you are in a roller coaster borrowing from A to pay off B? This is a sad reality for most people who are weighed down by the burden of debt and have no idea how to free themselves. Becoming debt free is possible, but only if you take time to understand how you got into debt in the first place. Once you have been brutally honest with yourself on how you landed into the debt hole, then you can devise steps to get yourself out. Sometimes, a trusted friend can be of great help in pointing out those bitter truths you are so ashamed of admitting to yourself.

Here are 7 sure ways to becoming debt free:

1. Change Your Mindset

Before getting into the figures, it is essential to know that you can only accomplish what your mind can visualize. Debt brings about shame. Handling money is logical, and unless your mind lets go of the shame, logic will not prevail. Accepting you have a problem is the first and most significant step to becoming debt free. You are not the only one with this struggle, and there are others worse off than yourself. Brace yourself for a little humiliation; it hurts but it’s liberating and the only way to get started.

2. Plan

Failing to plan is planning to fail. You must have a plan on how you will repay your debts. So, list down all that you owe, the amounts and urgency, your income and your monthly expenditure. This will give you a clear picture of your predicament. You will also be able to tell how much you can set aside for debt repayment. Give yourself realistic targets on the amounts to pay towards the debts, and the duration in which to complete them. You did not get into debt in one day and cannot get out in one. So, be kind to yourself even as you set the timelines.

3. Change Your Lifestyle

This is easier said than done but very crucial. From your plan, make a budget that is workable for you, by reviewing your wants and needs. Wants can be set aside or dropped completely to give you more money to settle your debts with. That may mean moving to a smaller house, using a matatu instead of driving, forfeiting your expensive TV subscription, and so on. Let this be a realistic change. Don’t move to a cheaper house then spend double on commuting. All the money recovered from this lifestyle change should be channeled towards repaying your debts otherwise it will all be in vain.

4. Get and Income or MORE Income

When we talk debts, we almost always assume all debtors have an income. Just because you don’t have a source of income does not mean you should not plan on becoming debt free. We all have skills and knowledge no matter how little. The great thing is there are numerous jobs and businesses one can do with very little skill and capital. The Internet has opened up a myriad of opportunities and more than enough training on the same. It is, therefore, possible to gain skills that will see you make a decent living online and offline. These opportunities can also make for extra income for those already earning.

5. Sacrifice

Sometimes pain and discomfort are your best friends. You may need to work extended hours and miss out on outings. This sacrifice will help you develop discipline in your journey to becoming debt free. The best thing about this is that the sacrifice is temporary. Once your debts are fully paid, the relief will be so much worth the sacrifice.

6. Birds of a Feather

Find people who are on the same journey as yourself and interact. It will make you want to keep pace, and when you fall behind, they can hold your hand and urge you on. They can also hold you accountable and help you keep track. Remember, you are the company you keep, so avoid people who will encourage you to veer off your course.

7. Celebrate

Make a point to celebrate every small win. The best applause is the one you give to yourself. Go to your plan, check off your win, no matter how small and reward yourself for making it. This will provide you with the needed zest to keep it going. If you fail to keep up, applaud yourself for realizing so, then go ahead and get back to your plan. Every small win brings you closer to the big win.

Conclusion

Becoming debt free is a journey that requires the right mindset, planning, discipline, and commitment. Sacrifices will have to be made, and it will take time. It is not easy, but the great news is that ‘It Is Possible’.