How to get out and stay out of debt In four easy steps

The following article highlights five tips that you can follow in order to stay debt free

06:49 13 February 2014

Becoming insolvent is one of the biggest dangers we face today. Many people accrue mounting debt and just do not know how to get out of it. There is a lot of information about getting out and staying out of debt. Financial advisors have a field day giving people advice about how to stay debt free. Some of the tips work while some barely scratch the surface. 

 

•Chop It Off In Blocks

If you want to stay out of debt, you should pay more than the minimum. If you have an extra paycheck, then put something on top of your monthly credit card bill. If you have high interest cards, this money will go a long way in diminishing your debt.

 

•Stay Calm Always

The term “debt” or “insolvent” is quite frightening to some people. Dealing with debt requires you to stay absolutely calm. Thinking about it does not mean it will go away. You should instead come up with strategies like budgeting to bring your debt to a manageable level.

 

•Indulgence or Necessity- Ask the question!

The amount of debt can be attributed to living beyond our means. To get out of it, you should be prepared to get rid of luxury items in your expenditure. Have an open mind and seriously think about scrapping off luxury items in your budget list

 

•Relax and Get Help

If all else fails, get help.  Finding a professional will do you great justice. Since, you are looking to get out of debt, every little bit helps. Some of the tips proposed by financial advisors are out of touch with average consumer and might not be relevant to their prevailing circumstances. 

 

When you follow the above prescribed steps, you will get out and stay out of debt.