In our world today, people find it easier to borrow money than to pay back, hence this article will educate us on 10 important freedom debt relief tips to payoff any amount of loan.
Well, what is your understanding about debts? Is it good to take loans and become a debtor? Are there good debts and bad debts?
Okay, let’s consider a tip from Robert Kiyosaki, best selling author of rich dad – poor dad.
He emphasized two types of debts in one of his teachings, which are good debts and bad debts.
Also, he went further describing good debts as asset builders and bad debts as liabilities because rich people know how to use debts to create wealth.
Furthermore, one good difference between assets and liabilities that makes the rich richer is in their ability to use debts to get rich.
Well, being in debt is a financial burden, hence let’s check out some vital 10 freedom debt relief tips for every millennial in this jet age.
Table of Contents
10 Freedom Debt Relief Tips For Every Millennial and Loan Takers Today.
Just before we proceed, before you consider to start up a profitable online business, make sure you’re not starting with a loan otherwise always consult your financial adviser when necessary.
Also, It could be very easy to consolidate debt but a bit difficult to pay back. Hence, these freedom debt relief tips are sure to help you work it out.
1. Know Exactly What You Owe:
The first approach to clearing your debt is knowing how much you’re actually owing.
No matter the size of your debt, if you don’t know the exact amount you’re owing, how do you intend to clear them off.
To do this, take a sheet of paper and write down a list of your creditors and the amount involved.
Hence, you can write down from the first money you borrowed, the person or institution you borrowed it from to the least money you’re owing in descending orders.
This is a good kickoff in your payback plan.
2. Speak With The People You Owe:
Communication is an important key in today’s jet age.
Hence, It’s vital for you to speak to your creditors, the person you owe or the institution/body who gave you a loan.
Avoiding your creditors could make them demand their money from you in an unusual way because it makes them lose trust in you.
So, it would do you lot of good to pick one day from your weekly busy schedule to personally meet and talk to your creditors.
Hence, let them know you appreciate their interest in giving you a loan or borrowing any amount of money to you and assuring them you will sincerely pay back.
This should be done with self respect and humility.
3. Prioritize What Is Feasible And Have A Plan:
Don’t just say oh am gonna pay back my debts, I know I borrowed money but am gonna pay back.
Its important you make positive and achievable plans.
So many people are in huge debt today because they never truly prioritize what is feasible in paying back their creditors.
Don’t boast of paying all back in 6 months if your financial capacity cannot meet up to that.
Hence, I advise you split it out weekly or monthly and see what works for you.
4. Avoid Incurring More Debts At All Cost:
Try as much as possible to avoid bringing up more debts on the existing ones.
Knowing the best time to get a quick loan cash today will help you cut your loses and do things according to your financial strength.
It makes no sense to have a debt repayment plan and keep incurring new debts thereby struggling to pay back all at the same time.
I advise you do nothing to borrow any extra money from any source.
You must be careful buying stuffs using your credit cards or taking a loan to clear another loan, that sounds crazy right, but people do it in our society today.
Therefore, watch out to avoid incurring more debts.
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5. Your Freedom Debt Relief Plan Must Include Working To Reduce Your Expenses:
Expenses are truly inevitable, no one can live without spending money.
However, you must try as far as possible to reduce your expenses.
If you must stay out of debt then get ready to to spend less than you earn.
No matter how good your plan may be, if you don’t reduce your expenses, you will end up borrowing more money.
This is one of the financial traps in our world today, almost everyone is guilty when dealing with expenses.
Even if you decide to run a company as an entrepreneur, one good characteristics of an entrepreneur is in his/her management skills.
Hence, spend less than you earn.
6. Know Your Daily, Weekly Or Monthly Expenses:
How many people actually care to know how much money they spend daily, weekly or monthly.
Oh not many, maybe am also guilty of this. We just spend money without an actual understanding of what we incur as expenses on a daily basis.
However, there are expenses we cannot deny, such as feeding, clothing, transportation, medical bills and house mortgage and other unforeseen expenses that comes as emergency.
Well, controlling them will play a huge role in our freedom debt relief plan agenda.
7. Develop Other Sources Of Income:
Building multiple streams of income in this jet age is so important if you must be free from debts.
Relying on one source of income is risky.
Always know that your salary cannot be enough.
Hence, I advise you get some money to start up a business, learn a new skill, monetize your talent and invest your money in potential companies but avoid get rich quick schemes.
This is one of the most important and best freedom debt relief plans in our modern age of income and expenses today.
8. Pace Yourself If You Want Your Freedom Debt Relief Plan To Work:
Its easier to payoff a loan of $100,000 if you have to pay $1000 per month than to pay $10,000 per month.
The only difference here is that the person who is paying $10,000 per month might pay off his debts in 10 months.
Nevertheless, this might cost him to work harder in order to meet his target.
Alternatively, the person paying $1000 per month is more likely to pay back but with an expected period of 9 years.
This is just an example to help you phase your payment conveniently.
Hence, set yourself at a working pace you can cope with.
Do you prefer to pay daily, weekly or monthly.
The idea is to break down your loan repayment plans into strategic and visible ways.
9. Avoid Money Distractions:
Let your plans be achievable, avoid distractions at all cost.
It could be the huge to buy a new car or purchase a new house or go for expensive shopping and vocations.
These factors might hinder your freedom debt relief plans.
Hence, control your huge for expensive items and demands that will pull you off track till your goal is achieved.
10. Stick To Your Freedom Debt Relief Plan:
The best way to succeed in what ever plans you have designed is to keep to it.
Stick to your plan, stay focused in all situations and never look back for any reason.
This way, overtime you would be able to payoff your debts.
Nevertheless, circumstances might come up to push you away from you debt free goal. However, if you refuse to shift grounds, you’ll win.
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Getting out of debt could be so refreshing and exciting, I hope this freedom relief guide helps you set up reliable debt free goals.
How does it feel to be debt-free? Am sure it feels amazing and comfortable when you don’t owe anyone.
Let me know if this article was helpful, I await your comments and contributions at the comment session.
Kindly share this article to help someone out in need, thanks.