Debt Free Living – is it really possible?

Wednesday, June 11, 2008

I am so happy for my brother. He has incurred a lot of credit card debt ever since he resigned from his day job and took care of our family business. But he was able to get back to his senses and has decided to fix his financial situation that he is in to. He has struggled to pay all of his debt and slowly, he is starting to get back on his feet again.

So it got me into thinking, can we really get out of debt? Can debt settlement really help someone who is deeply in debt to get out of it?

Here are some of the things that I think can help in one way or another in getting out of debt.

1. Stop acquiring new debts. I think the reason why debt never stops is because we keep adding to it. So the first step in getting out of debt is stop all means and ways for you to acquire debt like using credit cards, gas cards, etc. This is the most difficult part but discipline is really needed in order for you to stay out of debt.
2. Record your spending. One way that I keep track of all my spending is by keeping an Excel file of all my expenses. This way, I will know if I am already over my budget or not.
3. Set a budget every month and stick to it.
4. Sit down and list down how much you owe and who you owe it too. Then once you know how much you owe, make a realistic budget which will include the payment for your debt. Then start paying your debt.
5. It wouldn’t hurt also if you get help form a third party company that deals with debt negotiation since they have the experience and know how on how to make settlement to credit card companies to reduce the total amount that you owe.

So you think we can really get out of debt? I think we could. All we need is the will power and the discipline and in no time we will be walking debt free.