February 7, 2022

Lifeline: Five Steps to Get Out of Debt

Debt is something that is easy to accumulate yet hard to get rid of. Like the weeds in your lawn, these things exist and grow at such a rapid pace and dealing with them already goes beyond the questioning of our own self-control. A debt could take on many forms. Student loans are necessary for some in order to be able to afford education for themselves. Housing loans aid people in putting a roof over their heads. Medical loans give people a chance to get proper treatment in hospitals, clinics and other medical facilities. Credit cards are used by people to purchase both their needs and their wants. Personal loans are what people from various walks of life take out for various personal reasons. 


Imagine an empty glass. As we go on with our lives, this glass gets filled (with debts), whether we like it or not – it’s inevitable. Slowly or abruptly, our debts will accumulate until our cup just overflows. It could almost take an entire lifetime to empty it out and in the process of doing so, lay physical and psychological repercussions like stress, anxiety, migraine and a lot more.

This leads us to the question: “If we cannot evade debts, how could we get out of it?” Here are five steps to get out of debt.


Step 1: Budgeting
For starters, there must exist stable sources of income – from this comes the budgeting. Creating a list must be made into a habit, especially if you are running on a tight budget. That list would contain all the necessary expenses – whether those be commodities, food, water, hygiene, gas, etc. – and even some luxuries, as long as the budget permits. Never spend more than what you earn. Self-constraint must be duly practiced. Doing this would give you a clear path away from possibly unnecessary debts.

Step 2: Save up!
“You reap what you sow.” Allot a portion of your income to your savings. Instead of spending your money on useless and unnecessary material things, it would be better to just save it for the rainy days. That way, not only could you avoid making any sort of debt, but you could also easily have access to funds in the case of emergencies.


Step 3: Cut those extra credit cards.
Credit cards are a proof that having too much of something is dangerous and unhealthy. This kind of ‘extra credits’ is something you wouldn’t want anywhere near your personal records. They could easily drown you in an overwhelming sea of debts. If you have enough funds for support, you could afford one or two credit cards with credit lines that you can shoulder. However, if you are just starting your first job or if you are running on low to minimum wage, one credit card is enough. Don’t fall unto the tempting pit of zero and low interest rates. You don’t need those cards!

Step 4: Spend wisely!
Think smart. Only spend on things that you really need. Prioritize your needs over luxuries. Weigh your options before spending your money on something – whether you could save more on using sachets of shampoo rather than the bottled one or whether using a credit card with zero interest rates to buy a washing machine would be better than using your cash on-hand. 


Step 5: Manage your debts.
Budgeting, self-constraint and smart thinking could only get you as far as a homerun. However, the step that could truly lead you to victory is debt management. You could not run away from debts so you might as well deal with them in the best way that you can. If you think you are a candidate for debt consolidation and you’re looking into someone who could manage your debts for you, check out debtconsolidation.com. They offer services that could help people manage their debts. Its three major services include: debt consolidation loans, debt settlement and credit counselling. For instance, if you ever need to settle a huge debt, you could seek aid from them regarding payment terms negotiation. Learn more about the wonders of this site by clicking the abovementioned link. 


There is not one way to get out of debt but managing your existing ones are the key to living a good life, alongside debts. Just think of an automatic tracker which tracks, arranges and manages your accounts for you – the next time you’d feel overwhelmed and helpless, just remember that you have a friend who’s got your back. 

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