Nobody wants to deal with bad debts, but unfortunately, it is a very common phenomenon. You’d be surprised to find out how many people you know struggle to manage their bad debts but with a change in attitude and the right strategies in place, a debt-free lifestyle is achievable.
Make up your mind to stay out of debt: Many people fall into debt because they spend above and beyond their means, living from salary to salary with barely enough to pay the bills. They can’t afford to pay for hang outs on Fridays, the new clothes that go with it, or the movie after. Yet, they continue to spend towards these outings every weekend.
The honest, painful truth is that if you don’t have the money for these things, you should not be doing them. Learning to be satisfied with your limitations is difficult but it is the critical first step to achieving a debt-free life.
Lay out your financial map: Understand exactly how much you make; your net income preferably. Understand how much it costs to run your life. Write down every expense and see where your money is going. List your debts from smallest to biggest, and attack the smallest ones first while making minimum payments on the rest. Avoid consolidating loans and similar methods of getting out of debt.
Once you learn to live within your means and have your debt under control, life will be much easier, and hopefully you’ll never return to the dreadful waters of too much debt.
“Debt is like any other trap, easy enough to get into but hard to get out of” – Henry Wheeler Shaw
Stay tuned on this blog for more tips.