A lot of people have asked me questions about how they can get rid of their huge amounts of debts once and for all? I have to qualify for the mortgage to buy the new house so how can I manage to lower my deb rates? Is there any way I can pay off my debt? Well, Senoritas and Senores, there sure are many ways you can be able to lower down the numbers of your debts and soon you will be out of debt once and for all. It sure isn't easy, and it will require time, effort, commitment, hard work, and patience.
So, let's get into the five main steps that will help you pay off the debt in a practical way. Follow these steps carefully and smartly for paying off debt in less time.
1. Spend Less
Spending money on stupid things, buying liabilities (such as new car, new wristwatch, designer clothes etc.), and buying stuff that you don't need at present will leave you in debt very soon. Never buy things on credit from your credit card unless it is indispensable to buy at any moment. Moreover, If you spend too much credit money on desired things such as lux food, the latest iPhone that you don't really need, the newest model car etc. all things will keep you in high debts.
2. Pay higher debts first
Paying higher/big/expensive debts first will keep you away from the additional hurdles at the time of paying all the debts from all the credit cards and other stuff as well. The key here is to choose that one credit source which is leaving you with a lot of debt due to higher interest policies, pay that one first and then move on to the lower debt and so on. This act will save you from higher credits and deficits for the future.
3. Never buy a new car or house
Like I said earlier, don't waste money on liabilities. Buying a new vehicle is stupidity if you are buying it on credit or in the financial state of debt. Instead, buy a used one in excellent condition. Also, don't buy a new house also, instead buy a pre-owned house and you might as well save a lot of money to pay further debts and credited money.
4. Find newer sources of income
You will always be in debt if you have only one source of income. The single source of income will leave you in financial credits all your life, instead, find newer and smarter ways to pay off all of your debts. I am not saying to work overtime and stress yourself out and age quickly, but I am asking you to invest the money you save. Save, save and save! This is the key, don't spend lavishly on clothes, jewellery, cars and all that shiny stuff that don't bring out money but just pleasure. Buy stocks, bonds, commodities anything potential that will be termed as assets and will generate massive incomes. Especially if you are on debt buying, stupid stuff will leave you with more debt and tensions in life.
5. The consolidation loan
If you can't save in the debt situation and which most of us can't, the best solution is to contact your bank and other financial services providers if they are offering consolidation loans. The consolidation loans will be an excellent option to get off the debts first and then actually save some each month.
The ultimate solution to get off debt is to spend less than you earn and save as much as you can and then ultimately invest that saved money into somewhere good to get the financial freedom.