Top 5 Steps For Getting Out of Debt

Top 5 Steps For Getting Out of Debt

Imagine waking up without having to worry about the next knock on the door and sleeping at night without the present anxiety over tomorrow. Yes, agreed it is not easy to get out of debt but it is better to start acting towards it rather than waiting and getting more entangled in debt.

Here are top 5 action steps to help you get out of debt:

 

1. Be Honest With The Present Situation

The bad thing about debt is that most people in debt don’t realize it until when it is way, way too deep. The first thing you should do is to analyze your present situation and know how much in debt you are at the moment, then accept the fact that you are in debt. Once this is done, you immediately switch your consciousness to recognize the fact that habits, lifestyles and any such thing that will get your further into debt has to stop and this is one of the major leaps towards recovery.

The worse situation ever is to be in debt and still accumulate more either consciously or otherwise. If this goes on, when will you get free?

 

2. Take Stock & Create A List

Who and who do you owe and how much? Draw out your pen and paper and create a list of everything you owe and who your creditors are, then re-arrange the list to show the most urgent of these and go down to the least urgent.

Next, list how much you have as cash or asset and this means everything you can quickly turn to cash. For example, you might have a skill that is in high demand like ability to design websites, do programming, offer consulting etc

 

3. Create a Repayment Plan

Take a look at your earnings, consider what you can offer for quick cash using your skills and assets and start a repayment plan. One way to ensure peace of mind is to speak with your creditors and let them know there is a problem and that you are willing to pay. Negotiate more time where possible and start working to do the repayments as agreed. Most creditors will accept to get paid in bits if you speak to them.

 

4. Make More Money if Possible

This may mean extra work, but hey, you are working for your freedom and you should do everything possible and legitimate to work out of the situation as fast as possible. One great way to make more money quickly is to offer your skills & knowledge for sale. If you can write, find freelance sites and take writing jobs. If you can design, do the same. If you feel you do not have any skill, go around your neighbourhood and offer to baby sit, clean for your neighbours, walk the dogs – just do something extra to get you out of debt.

 

5. Stay Out of Debt

Getting out of debt is great but it is extremely easy to get back in as fast as you never thought possible, so once you get out or as you work your way through getting out, make sure you watch it and do everything possible not to get back in.

 

Leave a Comment

Your email address will not be published. Required fields are marked *

JOIN OUR BUSINESS COMMUNITY
Join the growing business community trusted by 1M+ entrepreneurs, and keep up to date on our latest posts & offers!