How to become debt free in 100+ simple steps

How to become debt free? 

Read next words carefully. Family 1 pays off their debts of $40,000 in a year out of an annual income of $35,000 only. On the other hand, family 2 makes $100,000 a year, but they can’t make the slightest move to settle their debts no matter how hard they try to.
Why is it so? Definitely, the second family has a spending problem. They make lots of cash, even more than enough to pay all their debts in 1 year time. However, the problem is, they have so much money going out, to the point that they can’t keep their head above the water. But whether it’s a hefty car payment, a mortgage, credit card payments, or just making poor choices like eating out every night, what they owe keeps them from making positive financial progress.In short, all their income gets sucked up by all the expenses you see above. That leaves them with nothing. What they can afford only lets them make minimum payments towards their debts, leaving them too helpless to gather any meaningful momentum. This is certainly a difficult and stressful lifestyle to live. Today we’ll try to solve the problem of how to become debt free in 12 months.Learn how to become debt free in a yearAnd if you are very keen, you’ll notice that people who become debt free at some point in their lives changed their way of living. They realize their old lifestyle isn’t working, so they made some serious changes. You’d think they made some personality changes, yet that’s not the case. Instead, they rediscovered some aspects of their personality that have always been there.If you’ve found yourself in the same situation and you need help, here a few secrets you can learn and know how to become debt free. Below we tried to answer how to become debt free in less than 2 years.

1-It’s all in the mind:

Let me tell you, debt is not all about money. Rather, it’s a sense of guilt, attachment, sense of vengeance,How to become Debt Free Fastgrudge etc. This is also known as consciousness of credit and debt, which has a tendency to manifest in the physical world as banking and commerce. Unless you learn how to separate yourself from this mindset, it will be very difficult to find the right motivation to keep you moving.Human beings have a natural responsibility to pay off their debts, and financial institutions take advantage of this sense of responsibility. You end up getting under their control, right? But if you understand the nature of financial institution, you’ll understand to whom you are truly responsible to pay off your debts to.

2 -Pay with cash, avoid using credit card for daily living expenses:

Ancient religions like Buddhism, Hinduism, Judaism and many others did not talk about reducing interest. They only spoke of abolishing interest. They considered this as making profit out of nothing, and this was crime–it still is today. Such kind of manipulation evolves into fractional reserve banking and counterfeiting as it is today.To avoid getting into that kind of trap, keep off credit cards because most of them have high interests. Instead, pay with cash all the time.

3- Make a budget and begin tracking your expenses:

Drawing a budget and sticking to it will help you. But the most important thing is to track how you spend your money. To begin doing this, keep receipts of all your purchases. Then review your spending patterns at the end of every month.

4- Pay your outstanding debts with savings:

Do you have multiple debts with varying interest rates? Pay for the most expensive debt with a portion of your savings. Once you settle it, continue paying for the rest with your savings.

5- Live a lifestyle you can afford:

If you must have credit cards, don’t carry them with you when leaving the house. Cut back on unnecessary spending. If you have to take lunch, carry leftovers to the workplace. You don’t have to spend $7 every day on lunch. You’ll save $200 every month. How about using that $200 to pay off your debts?

6- Don’t make financial promises you won’t keep:

You’ve always heard people say promises are debts. By making a promise, you are making a commitment you are likely to break. Right now, the wall street journal states that there are more than $7 billion in pending student loan that haven’t been paid yet–remember that’s a promise. The federal government is saying it won’t tolerate any pending loans from now. They are even threatening to seize social security benefits of the affected individuals to settle outstanding debts. Remember that lenders will always expect you to honor your commitment, so avoid promises at all cost, unless very necessary.

7 -Seek financial help:

If your financial burden is too overwhelming, seek outside help. Look for a reputable agency that’s registered with National Foundation of Credit Counseling (NFCC). Sometimes it’s good to seek financial advice when everything else is not working.Contact National Debt Relief Program

How to become debt free, tips and warnings:

Bills increase instead of decreasing. When they do, they affect you pocket. You need to watch out for such small increments and make necessary adjustments.

8-Your transport bills:

There are 4 factors that affect your mobility cost, namely; fuel cost, running cost, maintenance cost, plus monthly installments. With fuel prices skyrocketing, how about adjusting your driving habits? How about buying a car that fits your purpose well? Lastly, what if you drove thrice or twice a week instead of the regular 5 or 7 times a week?

9-Cancel services you don’t use any longer:

You used to go to the gym. You’ve attained your goal. Why don’t you jog instead of maintaining a regular gym routine? And please, cancel that cable. Do you really have time to watch over 400 channels?

10-Your grocery bill:

Is your family growing? If so, you could use coupons at grocery stores. And if you look inside your fridge, you’ll be surprised to find grocery leftovers still available.Use the food you already have.It’s not very difficult to learn how to control debt and eventually stay debt free. Tips for how to become debt free fast are open for anyone to learn. But out of the several things you are told every other time, you need to look for practical tips you can use without struggling. Take advantage of the ideas above and see how it goes with your finances. You might just be surprised.

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