Get Out of Debt Now

Are you fed up with the unsafe feeling of being in debt? Do you want to be free to do whatever you want? Then this article is for you. In just 5 simple steps I will walk you through exactly what is needed to get out of $25,000 of debt in one year.

 

Why get out of debt?

Good question, but one that I also have a great answer for. The best answer is because life is better with freedom, in particular financial freedom. The reason I know is because I have been rich and I have been poor, and there is no comparison that having wealth is better overall. Debt keeps one grounded, and limits the ability to take on more risk, so it should be used carefully, logically, and only if necessary.

Step 1: Make sure there is an outcome

Think about debt, it is a financial burden (it is something that will literally force you to make monthly payments, or cash outflows). So the logic of this is that it does not make sense to incur a financial burden, without a corresponding financial inflow. Hopefully the lightbulb has now gone off in your head if it had not already.

Step 2: Budget your income and expenses

Now to the cruz of this article, how are we going to get out of that debt. The first obvious answer is using the income that the debt should be producing to pay off that loan. So if you took on college debt in order to get a job, might as well obtain one that pays well. If you have student loans payments of $500 per month, then it makes sense to leverage that into a career that starts paying you $2,000-$3,000 right way. Then you will be able pay $1,000 in rent, $500 in student loans, and still save around $500 -$1,000 per month. Will you have room for “having fun” activities? Probably not, but this article is about getting out of debt ASAP.

Step 3: Work now, play later

It may sounds tough, but ff you are in debt then should you be having fun? Probably not, but definitely not if you plan to get out of debt quickly. The issues is that the plan laid out above does not get out of debt $25k in debt in one year. (That is tough to do!) If you did the math, $1,000 per month would come out to $12,000 per year, so we’re a bit short.

Step 4: Find other ways to make money

How else can I make money besides my career/job? The simple answer is that there are so many ways to make money besides a normal job or career (finance, accounting, marketing, sales etc.)

As a first route, log onto your computer and type in “freelancing”. There are hundreds of posting that will allow you to make $100s of dollars extra per month with just a few hours of your time each week.

Second option, get a second a job at night on the weekdays, there are many jobs that will pay well if you’re working a night shift, or obtain one for Saturday and Sunday, you will have plenty of time to enjoy your weekends once you’re out of debt!

Step 5: Refinance you debt

Is your debt spread out among several creditors? If so, you could consolidate that debt into one simple payment, that is lower that your current interest rate, and save money. Then, invest that money!

This article probably seems a bit scary and may sound crazy to most people, as it is much easier to simply work your job, then spend money having fun the rest of the time, but if you really are committed to getting out of debt, then you should be working to make money, or spending your time building skills that will eventually make you money.

 

 

 

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