5 steps to help you get out of debt
There are steps you will need to follow to get out of your debts. These steps would make it easier and faster to get out of debt.
You would need to map out a plan to help you be free from all form of debt.
Here are steps to follow to help you get out of debt
1. Stop borrowing money
To get out of debt, the first thing you need to do is make up your mind to stop borrowing money. This means you would not borrow money from family, friends and financial institutions.
If you keep borrowing money from people, it won’t be so easy to get out of debt, because there will always be a debt to pay every time.
So you need to make a conscious effort to stop borrowing money from people.
Also, you need to cut out anything that makes you keep getting money from people.
2. Organize your debts
The next step to follow is to organize your debt. You’ll need to arrange your debt according to priority. You need to know which out of your debt is more important to settle first.
To organize your debt, you need to list out all your unpaid debts, then start prioritizing which is more important to pay up. So start paying from your greatest to the least of your debt.
To get out of debt, you need to get your finance in control and there is no better way to do this than budgeting.
One of the reasons you always owe debt is probably because you really do not know how to control your expenses.
So you need to create a budget that would work for you, which would help you save more on your expenses. Creating a budget will help you adjust your monthly expenses.
4. Look for ways to make more money
TO get out of debt, you need to look for other means to make more money. You can create a side hustle which would make you extra income, or you could sell old stuff around your home.
This would help you pay your debt even faster than you expect.
ALSO READ: 5 investment moves to make in your 20's
Every good opportunity you get to make money, grab it. But make sure it is legitimate way.
5. Create an emergency fund
Spending on unexpected and unplanned life situations might be a reason why you are always in debt.
That is if you don’t have an emergency fund to sort it out and you end up borrowing from people to sort out such situations.
To stop this you need to create an emergency fund for such situations.
JOIN OUR PULSE COMMUNITY!
Eyewitness? Submit your stories now via social or: