3 simple steps to debt free living

Debt free living is not hard with these three steps.

11:49 05 January 2014

Getting into debt is not nearly as difficult as getting out of it. There are a few things you can do however, that can help you get back on track financially.

• Know your financial situation

Denial is one of the easiest ways people have debt creep up on them. They deny they are having a financial problem. They do not have a solid idea of what money is coming in and what is going out. They do not keep an eye on their spending habits. This type of lifestyle is how people get into debt. In order to get out you need to know where you stand.

• Create a budget

In order to create a workable budget you are going to need a few pieces of information. You are going to need to know how much debt you have, you are going to need the amounts of each of these obligations, and you are going to need to know what assets you have available. When you have access to these pieces of crucial information, you can work out a budget and keep to it.

• Create a debt free strategy

In order to get out from under the financial burden that too much debt places on you, it is important to create a strategy. To create a strategy is only the first step. You also have to be willing to stick to that strategy. Most people do not realise that that the two months they spent getting into debt can take years to get out from under.

If you are fraught with debt issues, find out what your situation is, acknowledge it, create a budget and then create a debt free strategy. It may take a while to pay everything back but each day will bring you one step closer to creating a financial stable outlook for you and your family.