9 Steps Freed from Debt

Having debts make life uncomfortable, and a source of prolonged stress. The bigger the debt, the harder it is to be repaid. Adoption of the following nine ways to liberate themselves from debt.

1. Realize that you owe
Whatever was greater your debt, realize that you have a debt. This is the first step to freedom from his net. Because when it is realized, you will be motivated to find a way out. Conversely, if you are indifferent, and feeling not owe, you'll usually lazy to find a solution.

2. Calculate debt
When it comes the awareness that, please sit down, make a note of how the debt entirely. Write down who you owe, including small debts that you are not aware of, such as debt to friends and parents. Do not forget to calculate the interest. See also the period of repayment. Prioritize who needs a quick settlement, such as credit card debt and Loan. With this record, will be thoroughly illustrated the obligation to pay your debts in full.

3. Debt negotiation
In some of the debtor (creditor), you can negotiate for payment relief. For example, apply for a reduction in lending rates to banks or private lenders. Or moving the debt on bank interest rates low. Today many banks that offer balance transfer programs with zero-percent interest in a few months. You may also request waivers on bank credit. Just tell me honestly your financial situation is difficult. Usually there will be a payment alternative that suits your financial condition. Be careful not to get stuck on a floating interest rate or not fixed, which at times can be changed. If you go down no problem, but if rates rise, you will be caught installments that will continue to grow.

4. The proportion of income
Create a proportion of your income per month. This will make it easier for debt payments. That way you know exactly where your money flows. Ideally, the mortgage debt should not exceed 30 percent of your income. But in a pinch, can be enlarged again. After all, temporary. Once financial conditions have improved, this post could be diverted to other expenses, or saved.

5. Immediately pay
If you already have a scheme of debt, and know the ability to pay each month, immediately pay on time. Do not be postponed again because it will increase interest. Prioritize debt repayment on the high value and impact of such foreclosure homes and cars. If you have more than one credit card, prioritize large amounts or high-interest.

6. Find additional income
If it turns out debt to pay each month is very large, can not be addressed with current income, inevitably you have to look for additional income. Can find a second job, or work overtime. If you have a number of things worth selling, you should sell it through online or garage sale.

7. Hold down the spending appetite
To calculate how much your ability to pay the debt each month, would have known how spending a month. Ideally, heading for debt repayment could be a big plus to fast. In order for this post can be large, then heading spending is reduced. That means you have to restrain spending appetite for a while, until your debt is paid off.

8. Lowering the standard of living
If the above steps still do not also free you from debt, immediately lower your standard of living. For example, look for a cheaper rental houses, move to a cheaper purchase price, or if necessary move to house the elderly. replace the car with a cheaper, in terms of fuel or the price. Reduce also eat at expensive restaurants or cafes. If you need to bring to the office to eat lunch.

9. Stop owe
If you do not meet the ability to take any loan, then do not ever dare to owe. Moreover, the proposed credit card. Some people who live without a credit card claim quieter life. If you want to buy something better to wait until enough money. It takes time, but life is more peaceful if not pursued the debt.