How to Become Debt Free
Maybe your parents forced a tiny piggy bank on you when you were younger and you tossed in a few pennies every now and then.
Or, you opened a savings account while in college and really started funneling those extra bucks into it.
Whichever way, you get your first look at what it’s like to put money aside for rainy days and, also cut back on less important things.
The issue of accumulated debts is growing each year, with more and more people taking loans and spending more with their credit cards.
There is no shortage of reasons to take loans. Students need loans to settle into college, businesses could require loans to start up, and even the government takes loans.
Having the burden of debt in your financial plans takes a big chunk out of your plans and can lead to depression, anxiety and, stress-filled living.
However, with proper planning and the right motivation, discipline, and tools, you can find yourself living a sweet, debt-free life.
Work on a Side Hustle
The first way to calm your nerves about your growing debt is by earning some extra cash.
Earning extra money from a side business means that you would have more money to put into your financial plans, and extra to funnel towards clearing off your debts.
You can start by developing some natural skills you have and become a web designer, writer or, rent out some rooms in your home.
Debt Consolidation Loans
You can lessen the interests accumulating on each of your loans by putting them all together into one loan and reducing your interest rates.
A debt consolidation loan allows borrowers to collect one large loan to pay off any debts they might have, and then pay off that single loan over a period of two to five years.
This allows more breathing space for borrowers plus, a relatively smaller interest rate.
You can find some of the best debt consolidation loans for 2019 here.
Building a tight budget and sticking to it is instrumental to any financial plan, especially when you are trying to clear your debts.
You can make a comprehensive plan, allocating money for essential expenditure like feeding, housing and transport and, cutting down on the money you spend on shopping and other miscellaneous.
You can allow yourself the occasional night out with friends or vacation but, everything you do, you must consider making the most of every penny.
Any extra money you make, you should funnel towards your savings account. A savings account will always come in handy on a rainy day.
Being in debt does not however mean that you should completely cut off any money you funnel towards your savings.
Even when you have cleared all of your debts, do not stop paying money into your savings account.
Whatever you are doing, you must do it with an eye towards the future. You must consider your financial goals in the near and distant future and build your plans in consideration of this.
If you are working hard to clear off your debts to buy a new house or take your family on a vacation, keep this in mind to help you stay in focus.
Find your inspiration and cut needed expenses to begin your debt paying journey in 2019.