How to Get Out of Debt and Build Financial Life

April 29,2019 14:03 PM

Why good people have bad debts? 

1. Easy Credit – credit card, buying wants rather than needs and even buying without money.
2. Signing loan for someone else – guarantor for other people will put you in jeopardy and end up paying for somebody’s debt.
3. Medical Emergencies – sickness of any member of the family is unavoidable.
4. Sudden Job Loss.
5. Dodgy Investments – being victim of scam, always remember if it’s too good to be true, sign of red flag.
6. Family Events and Celebration – pushover for all birthday celebration as well as fiesta even without the money needed to have one

Steps to get free of Debts
1. Align your spending and values
2. Increase your means
3. Create an emergency fund- 1-2 months of income
4. Negotiate a lower interest rate on a credit card
5. Make a list - My Debt List

Pay the smallest amount first and pay the biggest interest rates

Don’t borrow when you need it, borrow when you don’t need it. Stop swinging debt as solutions to your problems. Borrowing money to solve another debt, will just bury you.

You’re sick and tired of being sick and tired

Debt doesn’t have to be normal- just because everybody is using credit card or buying online, doesn’t mean you have to do it

Avoid the status anxiety – stop pretending and projecting a false representation of you. Always be true to yourself and live within your means.


Loan Debt