Sometimes, it’s not enough to try your best to stay out of debt. All the preparation in the world can’t prepare you for the circumstances of your life. There are a lot of people who have trouble staying out of debt. You might have been dealing with it for years. Maybe even for as long as you’ve had financial independence. Well, now it’s time to truly declare your independence. In this guide, we’re going to look at how you truly tackle debt. How you build your way out and make sure you never fall back in again.

    Take a closer look at your finances

    To start seeing the way out, you have to see where you are right now. You might only see your debt and think you have no options ahead of you. Calculating your net worth might tell you otherwise. It’s not only about measuring debt. It’s also about measuring savings and assets. If you have a positive net worth after, then it is by no means impossible for you to get out of debt. Of course, you likely won’t want to sell your home or your car. But you can identify some other assets that could be cashed in to help you chip that debt down.

    Start putting more aside

    Besides the monetary value you have right now, you need to better identify your income. Not just how much you get but where it’s going to. Freeing up more of your income is best done with a budget. See how much you have towards essential spends. Then look at the non-essential and start thinking about how you can cut down on them. Starting to get better at saving is essential not only for erasing debt. It will help you build wealth after that debt is gone.

    Make use of your assets

    If you have real assets, then you can make use of their value to help you deal with debt. For instance, you might want to start selling clothes and used items that have some value. Or you might look to rent out those assets instead. If you own property, you don’t have to get a lodger to rent it out. Plenty of people are more than happy to rent storage space if it’s safe and cheaper than the commercial options. Similarly, if you have a car, you can act as a courier or use apps like Uber.



    Start a side hustle

    Even if you don’t have those assets, there are a lot of ways you can start making money in your free time. Online listings have jobs for people with all kinds of talents. You can look elsewhere for opportunities to write, do visual design or otherwise use your abilities. It’s no get-rich-quick scheme but filling surveys online can also help you earn a little here or there. It can also get you vouchers, enabling you to save on your expenditures. Side hustles rarely turn into new work opportunities, but they can be the extra kick your savings need.

    Play the debt shuffle game

    Different debtors play by different rules. Knowing those rules can help you move them around into a position that’s better for you. For instance, credit cards normally have pretty low interest rate caps, so you want to keep them there. Others, however, will continue to grow and grow. To make them more manageable, you might want to consider options like consolidation loans. Or you might want to free up equity on your home. It’s all about choosing the option that gives you the breathing room to pay them off faster.

    Have a real plan for tackling them

    If you want to pay them faster, you can’t try to put out every fire at once. Some debts or loans might have a minimum payment that you have to make. But beyond that, you should be trying to put as much of your funding to one loan or debt at a time. You might want to get rid of the smallest, so you have one less thing that’s continuously impacting your credit rating. Or you might want to tackle those with the largest interest, so you’re paying less over the whole process. The point is you have to make a decision.

    Getting out of debt is the exact same as learning how to be responsible with money. It means knowing how your finances are doing and where best to work them. It means having plans while also being open to opportunities. Use those tools to get out of debt and they’ll keep you more financially savvy for years to come.

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