How to become debt free? (Simple steps)

Every individual needs to debt free, and have enough money to fund yourself like education, accommodation etc. How to become debt free.

In the early age, you use to take the loan for education, purchase books etc, after completion of your education you are bound to repay your loan. Here is some best way to get out of debt.

Monthly Installment

Paying your debt of educational loan, car loan, credit card bills you have to fix the protocol to pay the bills on monthly basis. Paying debt will not be compromised whether you get a good amount of pay or not.

You have to settle the debt, it also directly affects your credit rating and you will be locked out from future financial opportunities.

You must keep yourself busy making money through little investment, YouTube, social media etc which will allow you to earn some money and settle your Debts.

Also Read: Inflation-how does it affect the (economy & common man)

Budget your Finance

Budget is a protocol to control over spending and settling the debts and monthly expenses. Now you are earning money from your part-time job, online business, YouTube channel etc.

You must prepare the budget (betting inflation) to eliminate overspending on luxury goods that you don’t need, You must priorities your debt settlement instead of purchase useless stuff you won’t require.

Budgeting is very simple, first, you list out your income and on the other side list out the expenditure and settlement of debt if any, You also have to get the room for the saving too, which will help you in future expectations.

Budget plays an important role in every field of finances. You will stick with your plan and make yourself debt free.

Sell Unless Staff

Everybody is in the possession of some the things in the house, garage or office which is unless, those things just uses your space and maintenance cost, which will not give you any comfort as well as any return.

Also Read: Tax relief under section 89(1) on salary arrears

You must sell out those things to the person really required. There are several online websites available on the Web which helps you sell the staff and get you a good price.

Once you get the price from the staff you sell, kept the money for an emergency instead of spending on luxury goods.

Seek New Opportunity

Sometimes you are not able to clear the Principle amount, you just able to earn the interest amount and this scenario runs for a long period of time, now its time you must upgrade your self.

You have to find some new and additional opportunity to settle your debts. As you already an experienced person in your field, you will definitely get a better chance.

Also Read: Tax liability on Car Allowances 2018

Even you don’t restrict yourself from your field but go forward and try something else to earn more money.

Get rid of debt consolidation

Debt consolidation is the process of taking an additional loan to pay off your liabilities.

For the purpose of business debt consideration seems to be better steps to formulate the financing but for the individual, it would be a very risky step.

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