In a debt-ridden society such as ours, it is inspiring to hear of people who have conquered their debt problems. One article from USNews.com tells us a story about a family who got so deep in debt and what they did about it.
It all started when the husband read a financial advice about getting rid of debt. He got so caught up in it that he decided to persuade his wife to join him in his quest to get the family free from debt. While there are many methods in getting rid of debt, they took extreme measures by selling things that they did not need through eBay. They literally became minimalists for a time. They stripped down to the bare necessities and even traded their $8,000 car for an old junk-looking type of car. Combining the amount coming from their jobs, the sale of the car, yard sale of their things and those sold online allowed them to pay off their debts in 20 months – and that included a $2,000 worth of emergency funds.
Now, the husband and wife has three kids, do not hold permanent jobs and yet they are living a debt free life! They claimed that they did not need to work full time because their debts were the ones eating up their income. With a debt free life, they do not have to worry about earning a lot. They even plan to buy a home without the need for mortgage. They can afford to give 100% down for it!
Of course, not everyone has the discipline and dedication to go for the extreme but one thing’s for sure, getting out of debt and living a debt free life is possible!
4 Things to Do to Get Out of Debt
Like the story you just read, it all begins with the commitment to get rid of debt. Getting out of debt just because it is stressful may not be enough and you can find yourself falling back in your old ways. It has to be based on a firm and determined decision that you want a debt free life. Here are 4 things that will help you achieve a permanent debt free life.
Stay away from new debts. While paying off your debts, try not to incur more. Stay within your budget. If you have credit cards, stop using the high interest ones and only keep the zero balance cards in case of emergency.
Spend only what you can afford. This is very important. The temptation of being able to use something without having to pay for it yet is what brought a lot of Americans in neck deep debt. If you do not need it yet, look for the cheaper alternative. The family that we discussed earlier rented for a few years while they were saving up for a new home.
Increase your income sources. This does not only mean getting a raise or a promotion. Sell of what you think you can live without. Trade your car for a cheaper one. Find freelance work. Start a blog, learn how to create apps – There are plenty of books and sites about increasing your side income. Instead of watching the latest seasons of The Walking Dead, American Idol or Modern Family, spend an hour or two each night working on increasing your income. An extra $300, $500 or $1,000 a month could make a serious dent in your debts.
Live a simple life. The great thing about being a minimalist is you only live with what you need. Sometimes, a debt free life requires a minimalist lifestyle. If this is not your personality, stick with it at least until you have paid off your debts. Get the help of a financial expert to teach you how to budget and manage your money. Learn more about living frugally.
Steps to Conquer Debts
To help you get started, research on your debt relief options. You have debt management, credit counseling and debt settlement – among others. While you can opt to do things on your own, getting professional help will speed things up for you. Also, you get someone to keep you on track and make sure you are paying off your debts regularly.
The next step is to pursue the debt relief path that you have chosen for yourself. Make sure you entrust your debt problems with a legitimate company. One sure way of knowing if a company is legit is when they do not charge you for upfront fees. Those compliant with government standards only ask for fees when they have results for you.
The last step to conquering your debts is to stick to whatever debt relief plan you have come up with the financial consultant you are working with. If it involves paying a lower balance as arrived through debt negotiations, pay them religiously. If it is paying for that one loan as a result of debt consolidation, do not falter with your payments.
If you want to know more about your options, call NationalDebtRelief.com. They have a group of financial consultants and debt relief experts to help you get rid of your debts. Call the toll free number on this page, go for the live chat support or fill up the short form found on this page. A financial expert will get in touch with you to discuss the best way for you to get rid of debt.