• Lower your monthly payments
  • Reduce stress and live your life
  • Avoid personal bankruptcy court

Great tips for a Debt-Free Lifestyle!

Although some people believe that their debt issues will get better on their own, they will not. Taking care of your financial life is each person’s responsibility and if you are having any kind of financial issue you are the only one who will be able to get a grip and solve it. Of course getting professional help is an option, however the change should begin on how you deal with money and how others do it. Your financial life depends on you, so why don’t you give it some great attention?

Debt-Free Lifestyle

How to actually get rid of debt?

Some people might find a Debt-Free Lifestyle hard to achieve, however it is not! The first step on the whole process is to pay attention to a few tips that will be extremely useful for you!

Save as much money as possible, if needed get a second job

Leading a debt-free lifestyle might be hard, especially if you already have debts to get rid of. In case that is what is happening to you, make sure you pay the debts as soon as you possibly can because this is the only way for you to achieve your goal. If you do not have enough money to pay the debts every month consider getting a second job and also save as much money as possible on a daily basis. Cut as many unnecessary expenses and have your goal in mind 24 hours a day and 7 days a week.

Try to make money out of things you no longer need

Creating an account on Kijiji, eBay or even Amazon does not mean you will be up to spending money, in fact it is a wonderful way to do the other way around: earn cash! Every person has some stuff home that they no longer need, why not make some good cash out of it? Cash that can be put towards your debts and that can help you exactly the way you need?

If you have multiple debts…

In order to achieve your debt-free lifestyle goal as soon as possible you should get rid of your debts as soon as possible, we all know that, but what if you are dealing with multiple debts at the same time? What is best to do? Well, in this case the best option is to get a single loan and pay all debts off, that way you will only have to pay a single debt off and will be able to deal with better interest rates (and only one).

Work online, remotely

If you need extra money and you do not have enough time to work a third shift you should consider doing some freelance jobs online. It is always a great way to get some extra cash! You can also work in different jobs such as babysitting, taking care of dogs while your neighbor’s travel or even getting rid of your neighbor’s snow during winter. There is always a great way to make extra cash, it all depends on you!

Settle your debts whenever possible

If a debt-free lifestyle seems to be far away from you then what you need to do is try to settle your debts. There are several different bank companies and also stores that wish to receive the money in the best way (and fastest way) possible. Because of that they allow people that owe them to negotiate the debt and make payments with reduced interest to get rid of the debt faster.

Talk to a debt counselor

Several countries offer these services for free. In case you cannot figure out what your best options are, make sure you contact these professionals to help you out. There is no problem asking! In fact there are several professionals of this field that will be able to guide you through the whole process and will give you very useful tips on how you can keep up paying your debts.

What not to do when trying to lead a completely Debt-Free Lifestyle?

There are some slips when it comes to trying to save some money and getting rid of debts. There is thin line between actually doing it and getting deeper and deeper into the debt hole. For example, there are some people that get a loan to pay all of the debts off and end up spending part of the loan in other things such as paying current bills or even getting a TV of anything else. This is a very common mistake that should be avoided.

It is also important to try to get rid of the loans as soon as possible, after all a new loan will also charge interest (even if in smaller amounts). The faster you work towards your goal the faster you will be able to lead a much happier life rid of debts.

5 Debt Mistakes to Avoid

Millions of people are in debt, it’s been true since the concept was invented and will be for the foreseeable future. The ways to get into debt are as plentiful as there are people who are in the situation. It can feel hopeless sometimes but you can get through it like so many people have before you.

5 Debt Mistakes to Avoid

Whether you bought a car you couldn’t afford, lost a job that paid more money than you make now or have student loans hanging over your head if you are serious about ridding yourself of the debt there is a way. In fact, there are a few ways, but the wrong ones can put you in worse shape that you were in before. Too many people make debt mistakes but if you continue reading you will be able to avoid them.

No Negotiation

Some people are afraid to call the credit card company, or embarrassed to ask for their help. Others just don’t realize it is a possibility. Whatever the reason a surprising number of people lose out on a significant savings just by making the debt mistake of not calling their credit card company and asking for a lower interest rate.

If the debt is medical they may be willing to negotiate for a lower amount if you can pay a portion of the bill in cash immediately. Figure out how much of the bill you can afford to pay right now and have the cash ready. You may be surprised at how often they will say yes.

If you are legitimately having a problem making the minimum payments ask for help. There are all sorts of programs out there to assist but you’ll never know if you don’t inquire about them. For example payments on federal student loans can be lowered dramatically thanks to the Income- Based Repayment plan.

It’s No Big Deal, Everyone Is Doing It

When everyone else is spending like there’s no tomorrow it’s easy to get caught up in the fun. Swiping the card and feeling that rush of having bags of new purchases or buying lunch for the gang is a temporary high and one you have to learn to let go of it you don’t want to spend the rest of your life under a mountain of debt. The first rule of debt mistakes is not to repeat them.

Thinking they can pay their bills off by winging it

You can’t. If you understood your financial situation well enough to control it naturally you wouldn’t be in this situation. Make a personalized plan that not only works toward removing your debt and avoids future debt mistakes but also helps to build your wealth. Forcing yourself to pay attention to the amount of money you need to pay off those spur of the moment purchases will help you avoid making them the next time.

Old Attitudes = Old Debt Mistakes Repeated

Change doesn’t happen without a conscious effort and it isn’t easy. Some people never get into debt because it is natural for them to be conservative with their income. Others of us do not have that natural instinct and for us changing how we view and spend our money is an essential but monumentally difficult task. Try to make it fun to change your attitude and at the very least consciously decide how to put your new attitude into practice in your daily life. Eventually these practices will become second nature when you stick to them.

Not making fixing debt mistakes a priority

Getting out of debt is a serious business. If you wanted to become a concert pianist you would not also take up boxing. First you’d need to concentrate all of your efforts on the piano and second boxing would damage your hands to make playing more difficult.

Think of debt payment the same way. You need to put 100 percent of your efforts into paying down the debt and any extraneous purchases, no matter how fun, are just setting you back from your goal. Set up a budget and remember to make room in it for things that are important to you, but keep removal of debt as the most important focus.

Try to consider the money you are spending as money you’ll be able to save once the bills are paid. You may begin to realize just how wealthy you could be if you weren’t treating your credit card as if it didn’t come with a consequence.

 

Freedom from debt is one of the greatest feelings in the world. If you can get there by changing your attitude it is liberating to know you will never again be in the position of feeling under the pressure of credit card bills and debt mistakes. Using the guidelines above you should learn to build your wealth and never fall into the debt trap again.

The Small Ways to Get Out of Debt Free

get out of debt free

When a person is in debt it can sometimes feel like there is no way out of the overwhelming situation. The thoughts of how to get out of debt free can seem daunting. In order to reduce the stress and anxiety over debt is to know your situation and take steps to reduce your debt. One way to get out of debt free is to take each problem separately rather than being consumed with the big problem of debt.

Know Your Money

It is important that no matter your financial situation you know how you are spending your money. This is something that is accomplished through two things.

1.    Know the Facts

It can be a stress saving situation if you decide to know how you spend your money. Take all the money that you spend in a month and track it. Determine how much you are spending on things such as utilities, entertainment, transportation, and groceries. Be sure to account for everything, because knowing exactly where you spend your money is the first place to gain power over your getting out of debt free.

2.    Modify Your Behaviors

Another part of knowing your money is learning ways in which to decrease your expenditures. Take the list of places that you spend money and determine if there are ways that you can decrease how much you spend. In some cases to get out of debt free can be as simple as taking your lunch rather than purchasing lunch at work or carpooling to work.

Know Where to Focus

When trying to get out of debt free you think that you need to eliminate the debt. This can be difficult because all the debt is important to get rid of, so how can you know where to focus your funds. One can have many different types of debt and a rule of thumb is to pay off the highest interest rates first. However in some occasions if you have a balance that is low then it would be beneficial to get rid of that debt before moving on to the higher interest rates. You can try to reduce your interest through communication with your lenders. If reducing the interest isn’t an option through your creditors you need to look into other ways. Some of these ways may be transfer balance or consolidation loan that can reduce many of interest rates in to a single low interest debt.

Enough Income

It is important to understand that no matter how you choose to get out of debt free you will need to have the income to do it. There are times that one does not feel that they are making enough money to satisfy all of their needs. Sometimes we need to think about the little things that we can do in order earn some extra money.

  • Requesting a raise. Requesting a raise may be one of the ways that you can increase your income. Take on extra duties or extend your shifts, these might be options that could help to increase the money you have coming into the home.
  • Short-term freelance. If you don’t have the ability to increase your income through your full-time job, you might look into freelancing with companies that offer short-term jobs. Elance.com and oDesk.com are two sites that are like this. These sites offer the ability to be paid for jobs like writing, transcribing, designing, as well as many other jobs available.

Motivation Can Be Hard

Some people feel that while trying to get out of debt free you life is disrupted and might not be worth the challenges and modifications needed. Whenever you are trying to make a big change in life motivation can make or break the success. There are some basic things that can motivate us through life changes.

  • Family
  • Life goals
    • Education
    • Retirement
    • Family growth
    • Buying a home
  • Winning a challenge
  • Advancements

It is important that a person be willing to embrace the motivations that will help them get out of debt free. Use this to your advantage by creating things that can help you stay on track. This can be accomplished through checklists, or inspiration boards, or even a date to be debt free by. Any of these motivation tactics might help to self motivate you through the process of getting out of debt free.

It is important for one to see how it is possible to make small changes to simple problems that can help to change the entire outcome of your debt situation. Getting out of debt free can be one of the most complicated and stressful situations that you will ever be placed in, however with small steps you will be able to advance and succeed through the process of financial freedom.