4 Simple Debt Freedom Solutions
Debt is the amount of money of fund which a person borrows or lend for the creditor or a lender and do a promise that this amount will be pay back with some of the interest and amount usually pay back at the regular interval. But sometimes debt create problem for the people because some people take too much loan, can’t pay back and interest rate increases with the time.
Cash vs credit card
When you go out for the shopping you use your credit card not the cash because you feel it is easy, you just have to pull out your credit card and buy the next shiny object. Basically we think there is no interest rate on the object the payments are of only 18 months, and next we buy a new car if you think for a second, if you buy these all the products for the card it also include the interest rate but if you buy them with cash you feel something in yourself which is painful. So, the things but from the credit card is more easy than cash.
If you delay and not buy anything now , invest your money into some business then you can purchase more after getting the profit, may be in the end you have better deals because you buy product from the cash, if you buy things from the cash you will save more money, even after the shopping.
Debt will ruin your business even it can destroy your relations, because you get stress and frustrated when you owing the credit card, personal loan and banks, so don’t worry there are some tips which will help you in getting freedom form the debt.
Pay back your debt more
If you pay back your debt less than stop it and pay more to get rid of it for example if you pay 150 then pay 300, or if you don’t stop paying less then you statement will show you how long it will take to pay back you all loan, you are spending more money and your interest rate is becoming equal to the cash flow for the lenders. So, try to payback more money and make a good budget and follow it to pay back or you should have to scarify for many things. If you have any bad habit so leave that like; smoking, drinking and gambling.
Make a list of all your debt which are even small and large don’t worry about that which debt is of high interest because we want to pay back our all the debt one by one. But pay back all the small debt which you have this will create motivation in yourself. The second this to do is cut off all the extra expense and which thing you don’t need sell them off and get money in return, now you can pay back you debt one after other.
Cash out all the saving, if you want to be debt free so use all the saving which you have and leave only 1000 for the emergency so, for that money make a debt freedom plan. Once, you will debt free you have enough money to fund the saving plan and save for the future.
Do part time job
Find some another job for paying off you all the debt as such fast as you can, when you start another part time job then you will have another income source and you can pay back you debt in 3 – 4 years and you will become debt free.
Change your behavior
These all the solutions are simple not easy, but do focus on them and try them to become a debt free that all solution will help you surly. Before, you realize that your current behavior has you in this situation. So keep this same behavior and from this behavior, you can pay back your debts.