No More Debt: How to Live Freely Financially
Consumer debt these days is staggering. By some estimates, it’s over $12 trillion dollars. Perhaps you’re one of the many Americans who have too much debt.
If that’s the case, you’ll need to address your debt in a constructive way if you ever hope to have no more debt. Here are four steps you can take right now to get started.
Make a Budget
Very often, people don’t know where their money goes because they don’t keep track of it. They have no budget, so they spend without giving it a second thought. If you fall into this category, just know that you are not alone.
According to Money Crashers, around 40% of people in the U.S. don’t have a budget. The first steps to getting out of debt and creating a budget are knowing how much you make and how much you owe. You should also know how much you have.
Make Sure You Get Paid
One key to your financial freedom is paying yourself before you pay anyone else. For example, say that you want to retire in 10 years. You need to know how much money that will take and you need to save toward that goal every single month.
You also need to put this money into a special account. Put money into this account before you pay any other bills each month. Doing this ensures that you have money long after your debt is paid off.
Deal with Debt
It’s in your best interest to put any extra money you have toward your debt. That might mean that you work an extra job or sell some items. It may also mean that you have to make some hard choices, including making decisions about filing bankruptcy if your debt is just too much to deal with.
If you are nearing a decision like this, you may want to talk to a debt professional, such as one from the Law Office of Barbara B. Braziel. Someone who deals with this issue on daily basis can objectively give you options as well as explain the difference between types of bankruptcy like Chapter 7 or Chapter 13.
Live Cheaper
Sometimes the best way to get out of debt is to live in a less expensive place. If this is an option for you, look for states that don’t require you to pay income tax. The money you save can be put toward your debt.
You can also look into becoming an expat in a cheaper country like Mexico or Ecuador. This can be an option if your job allows you to work remotely. In some instances, taking this step can reduce your monthly expenses by up to 40% or 50%.
It takes a concerted effort to get out of debt. Unfortunately, many people spend most of their lives dealing with this issue. To tackle it, you need to become aggressive in your approach. If you want to get out of debt, try one (or more) of the suggestions in this article for the best results.
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Category: Debt
