It’s Easy To Get Out Of Debt Early Than You Think — Simply Follow 4 Steps.
By: Sandeep Gupta
Tags: Loans, Debt Relief, Liability, Money Mindset, Wealth Creation

Do you Know Many People struggle to get out of debt ?

Because they accept it as a way of life. But think How you were feeling when you were not having any liability. Then You started with one consumer loan, like buying a phone or New TV or other products. It gave you a sense of achievement without having money in hand I can buy something. This is where one habit got created and You took other loans like Home loan, Car Loan , Personal loan. Now it’s difficult to come out of it. It became a habit because it was easily Available.

Now There is a Challenge how to overcome it. Because 20–40% of income now goes in servicing the Debt.

There are certain attitudes which you need to develop before thinking to get out of debt.

1- Reason why you want to get out of debt. (Without this it’s difficult to get out of debt- Write down)

2- Commit to yourself when You want to become debt Free (Write down the deadline )

3-Make a plan and stick with it — Make it Automatic and forget.(don’t focus on Debt more)

Once you have developed these above attitudes now you follow below steps how it can be done.

STEP 1. Stop borrowing.

Pay cash for everything. Slice up your credit cards into little pieces.

STEP 2. Modify your budget and spending behaviour.

Even the most drastic steps are worthwhile to reduce your current expenses to 70% of your income, leaving 20% for debt repayment and 10% for savings. If you don’t know where the money goes, get a small notebook and write down every penny you spend for a month. This record plus your check book register will give you a clear picture of your expenses. What You can track You can improve.

STEP 3. Begin saving immediately.

Working merely to get out of debt is not very inspiring. Do not wait until you are out of debt to begin saving. Start now. You can’t afford not to. The surplus that you generate by saving will have a beneficial effect on your attitude about money, aiding you in increasing your income.

STEP 4. Spend no more than 20% of your income on reducing your debts.

If your required monthly payments (excluding home Loan payment) exceed 20% of your income, then pay each of your creditors as much as you can up to, but not beyond 20% of your income. Communicate with your creditors to explain why you are doing this, and assure them that you will pay them as soon as you can.

Clearly there is a risk that your credit rating will suffer temporarily. This is a minor disadvantage compared to the benefits of getting out of debt. Staying broke merely to preserve the credit rating that enabled you to create the problem in the first place is manifestly foolish. Additionally, with money in the bank, your credit rating will be of less concern to you.

Golden Spiritual Nuggets : Once You paid any amount to your Creditors Bless Them With prosperity and abundance because they Helped you when You were in need of that debt.

Conclusion :

Attitudes To develop : Identify Your Reason , Commit to it and Take action to live a debt free Life.

4 Steps to follow :

STEP 1. Stop borrowing.

STEP 2. Modify your budget and spending behaviour.

STEP 3. Begin saving immediately.

STEP 4. Spend no more than 20% of your income on reducing your debts.

For more Interesting Topics on Wealth , Money and Personal Finance you Can Join my WealthAccelerator Mastermind Facebook Group Where You will get simple and Very practical Nuggets to Create Wealthy Mindset and massive Wealth.

https://www.facebook.com/groups/670522390173837/

With Love and Wealthy Wishes !!

Sandeep Gupta

About me

I am a Wealth Accelerator Coach. I coach people how they Can accelerate wealth by decreasing the liability and by increasing their Income and by growing their Money. I designed 6 Steps of Financial Planning which Optimise the Wealth you have. I love to Talk about Spiritual Laws of Money. How the universe can help you to grow the Wealth. I help people to take control of their money and enjoy life of Freedom and abundance.

Disclaimer: Above some concept has been taken from Book Money is my Friend and other books.