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3 Tips To Becoming Debt Free

Many people find that debt is piling up and there doesn’t seem to be a way to keep on top of all those monthly repayments which just keep coming in. At some point it is important to take a good long look at their finances to see where they can cut back but still put food on the table and keep a roof over their heads.

Here are 3 tips for anyone who is in a quandary over how to break free from debt.

Tip 1: Taking Stock of Finances

It is at this point where it becomes necessary to determine whether or not there is enough money coming in to cover what is owed. Some find that they need to take on an extra job to make ends meet whilst others seek debt management advisers to help make arrangements with creditors. Carefully calculate exactly what is being netted each month and weigh that against what is being paid out.

If there is little disposable income, then it is truly time to seek help. Don’t forget to take interest rates and surcharges into account when calculating such things as credit card and merchant accounts. Some of these may have variable rates attached which could be set to rise in the near future. This can significantly affect the amount of your repayments.

Tip 2: Contracting Part Time

Actually, finding a part time job to subsidize income is not a bad idea at any time, but when debt is out of control this is a viable option. Depending on how far in arrears bills are, it may be possible to catch up quickly with a bit of extra income. Many professionals find that they are able to work from home within their field of expertise for one very good reason.

Many companies are downsizing and as a result, full time employees have been made redundant. Whether a job is online or a service is offered locally, contractors are in great demand during this time of austerity. Believe it or not, many successful businesses were built up in just this way. The entrepreneur only set about to bring in extra income and ended up running a flourishing business full time!

Tip 3: Knowing When to Seek Professional Advice

There may be times when debt far outweighs income and professional debt counseling would be the best starting option. It still wouldn’t hurt to find extra income but that might not come in fast enough to settle up with creditors. Keep in mind that the initial consultation should be free and only services a debt management company provides on behalf of consumers.

In fact, there are often several ways to go about satisfying creditors such as a Debt Management Plan or a Debt Relief Order. Although two consumers may have comparable income and debt, there is no one-size-fits-all debt management solution. There are debt calculators available online which can help determine within just a minute or two exactly how far in debt you truly are.

With sound advice and a good plan of action, it really is possible to become debt free. It may necessitate using the services of a debt management team as well as finding part time or work from home jobs to subsidize your income, but the sooner you take steps to resolve your finances, the sooner you can be back on solid ground financially.

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19 Comments to “3 Tips To Becoming Debt Free”

Some people said “Life without a debt feels like no challenges” but actually for my self I hardly try to avoid a debt even for small money. Of course we cant avoid a regular debt as we have to pay some monthly bill for gas, electric, water etc but I always tray to not using my credit card to pay something as it will creating a debt to me.


StevenNo Gravatar

That quote you have is so true. When I was a teenager, I always avoid having debts from somebody. I personally think that there is no such thing as debt free. When you were still inside your mother’s womb, you were already in debt. Having a debt gets you going with your work, because you have to pay it.



Being debt free is one of the greatest feelings there is, especially when you’ve had a lot of debt hanging over your head for a while and work hard to get rid of it. I used to have a lot of credit card debt and it was such a relief when I was finally able to pay it all off.


A.J. MilesNo Gravatar

Very true, Josh. It feels like heaven when you are debt free. It’s such a great relief for me as I’ve had it for the past 6 months and it’s totally over now.


Debt is not a topic to be taken lightly. Just the other day I was given an e book that shows people how to source money to start a business. I was rather impressed as the book highlights many ways that most people can find the money that they need. I now give this book away to potential customers or distributors who claim that they cannot afford my products.


The other side to this situation is trying to cut expenses as much as possible. While many people would struggle with trying to find some kind of part time work, pretty much everyone can find ways to reduce expenses. The more money you can save, the more you can put towards your debts. Many small changes can add up to a lot…things like packing your lunch, making your own coffee, carpooling, etc.


Knowing when to seek professional advice is a big issue. Often we feel we must overcome everything ourselves and this is often the wrong path to take. No man/women is an island. Knowing when to get real help is a huge stumbling block for many.
I lost my first business because I did not know when to ask for help. Pride was a big factor too.


@ Jeremy,it is important to realize that one can only cut expenses so much. My favorite saying is “You can only tighten your belt so much” I think a 2 pronged approach is required when dealing with debt. 1) Cut expenses 2) Find a way to earn extra income. I used to be a debt counselor and it was frightening to see how thin these people’s budgets were. Any slight increase in the next month’s cost of living and they were in trouble. Strangely, none of them took heed of my advice to earn extra income.


You can also try to collect all of your various credit cards, mortgages, etc. and go to your bank and try to get them to help you to consolidate your debts by filing all in one loan with good interest rate you can pay off faster. Are you a good bank customer usually the banks offered to help.


Lennart, debt consolidation is a smart move provided you don’t abuse the situation. Too many people in my country consolidated their debt and within 12-18 months were back knee deep in the debt again.


Life is full of struggle, Debt is one part of it. Never take it lightly when you are in crisis. As you mentioned part time contract, i think its the best way to overcome from debt. Its give some extra which you didn’t except and about seeking expert i prefer always keep in touch because experience will help you out.


Hi there,

Sanjib here. Staying debt free is always music to ears. I would like to add to the 3 valuable tips given above. Debts mount most of the time due to lack of planning. Nonetheless, your top priority is to clear it. In that case, plan for some contingency asap. A part of the debt can be cleared when you get surprise returns on some investments done in the past, casually. All such returns can come in handy to clear the debt, to certain extent. Also, don’t even think of any new loan till your old ones are cleared.

Thanks for the post,



Thank you for this post. I haven’t gotten the feeling of debt-free. It’s never going to happen in my life. Perhaps I was born full of debts. But thanks for this great tips, I’m going to try them and I hope it’s going to lessen my stress.



I think that so many people now abuse credit cards and in consequence harm their credit score. It’s important to remember that your card has a maximum utilization limit and the closer you approach to this limit the more your credit score is endangered. That’s why I never make use of more than 10-20% of my credit limit. With low credit score you will have all sorts of problems in the future, like applying for a mortgage or a car loan.

I also think that credit consolidation is a very good solution to your debt problems. The most important thing to keep in mind is that one should decide to consolidate as soon as possible, because with every passing day is going to be harder and harder to catch up with interest rates. Moreover, consolidation will fix the temporary problem, but will not deal with a person’s ill spending habits that are usually the source of all debt problems. So, in order to have a healthy and balanced budget one must not only solve temporary problems but also establish some good spending habits.


Being debt-free is truly financially rewarding, but in this day and age most people are struggling to make ends meet and a quick way to get out of a financial rut is to run to the nearest lending institution and make a loan or get a credit card. Thanks for sharing your valuable insights may this make us all wiser in managing our resources.


Finance is the lifeline! Debts and the worries associated with debt have become a part and parcel of life these days. The tips for remaining debt free are brilliant. Thanks for sharing these valuable tips.


We all worry about debt. Being in it, getting out of it and having to get into it. More often than not, we try to ignore its realities as it makes us feel uncomfortable. But we have to face it, it’s wrath and even its sharp fangs if we let it swallow us. I am glad to have come across this post as it serves as a good reminder on how serious debt is and how it is important that we stay away from it as much as possible. This will truly shed a lot of light and hope to all concerned! Thanks for the insights you have given!


Debt is such a complicated topic, but you have managed to present solutions to getting through it and avoiding it in such a simple way. What you have written is something to live by. Thank very much for the share! :)


Figures have just been released in my country (South Africa) that reveal that only 2% of the country is truly debt free. The average household spends $814 per month servicing their debt. Sadly, this is not enough to galvanize people to do what it takes to get out of debt.