How To Live a Debt Free Life?
What is Debt? The first step into a debt free-life is to understand what debt is and how you get into it. The concept of debt is not at all intricate. Consider an example, you need something, you borrow it and you're in debt to the lender. When you give it back you're out of debt. Furthermore, if you borrow a tool from a neighbor, after giving it back you would have an obligation to lend something to your neighbor when he needs something. Quite obviously, if you didn't give it back in time, your neighbor would come to take it back and may even impose a penalty. Consequences of such-a-situation are that they would refuse to lend things to you in the future or they might tell others and give you a bad name. Now lets move on to borrowing something from a professional lender. You have to payback more than you borrowed and if you don't, you pay a penalty in fee, late charges, over-the-limit charges and any charges that they can think of so as to increase what you owe. With interest rates lenders are currently charging, and with the way the charges are calculated, it's not unusual for a borrower to be paying several times the amount borrowed as the interest.
You have to understand that if borrowers spend the money on things that have only short-term benefits like dining out or vacations, you should imply that they are paying for something even after the benefits are gone. Ironically, many people can't even remember what it was that they're still paying for.
Moving ahead, credit card owners are more susceptible to be under debt. Just buy a few things that you can't afford to pay in cash and never bother to think about how many payments you're going to have to make before it's paid off completely. Or just go to dine out to a place that's much expensive than what you can afford or go holidaying for a few days to make yourself feel better. Most of the people get into debt unknowingly. Unexpected events beyond their control like sudden illness or loss of a job etc.
Precaution is better than cure. To save yourself from debts, ask yourself "Do I have another alternative?" if there isn't, then make sure you are aware of all the terms and conditions so that you don't have any bouncers hitting your head and making your life difficult. Make a rule in life, "to save money for future". To avoid such critical situations for future, always save some money on regular basis.
How to come out of debt? Believe me, it does not matter how large amount of debt you're in or how much money you make. All that matters is that you should take some steps to come out of that debt, and follow them even after you're debt free so that you are never under any kind of debt in future also.
No matter what, but don't take more debt. Stop adding to your debt. Also, calculate the amount of debt you're under. It's not a shame to be in debt, but to stay in it forever is!
Admit that you are living in debt, and start cutting down on extravagant expenses. For example, try not to dine out in the most expensive restraint in town. You can very well settle for a cheap but good meal. Be conservative. Try cutting down on everything that you can.
Start saving. Always remember "a penny saved is a penny earned". Make a priority list of payments. It is important to know the order in which you plan to pay off the debts.
Flush that stress. It's absolutely okay to be under debt, it's is nothing to be ashamed of. Some tips. Think before you buy anything. Do you really need it? If not put it back. Be strict with yourself. Reducing on your daily expenses can become a stingy habit. Never hesitate to reward yourself once a while. You deserve it.
Read more articles about Debt Consolidation and Finance at http://www.FinanceMeter.net
Tarang Bhargava is the CEO of Vexat Inc. and has an affiliate marketing experience of six years. The website http://www.earncashonline.in is Affiliate Marketing invitation that provides an opportunity to Indians to make money through internet using his experience.
Read articles by him at http://www.ArticlesDirectory.in
posted by 7aprilwea @ 2:23 PM
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