No-brainer tips on how to be debt-free

A little planning and decisive action can get you on the road to financial freedom.

14:50 20 February 2014

Many people owe money, either to someone else, the bank or credit cards. It might seem like there is no way of getting through life without getting into some sort of financial difficulty that forces you to borrow money. If you are one of those people who is struggling with the cycle of debt, then this is a great article for you to read. 

 

Stop borrowing

If you do not want to be indebted to anyone then the first thing you should do is not to borrow money. Most people borrow money to pay off debt but that will always keep you in debt because you have not really solved your debt problem, you have just shifted it and probably made it worse. It is a vicious cycle, which you can only stop by negotiating with the people you owe for a reduction in repayment terms. If you demonstrate your willingness and commitment to honouring your debt, you will be amazed by how reasonable people can be.

 

Create a plan 

Have a goal and a plan on how you are going to reach it. Write everything down, commit to your plan, and then take decisive action. A plan might look good on paper but it can only be useful if you actually execute it. 

 

Find someone to guide you

Financial advisers are there to give financial advice to people who need it. If you cannot take into service a financial adviser then read and educate yourself as much as possible about those aspects of financial planning you struggle with. 

 

At the end of the day, you want to get to a point where you are creating wealth not just earning money. When you are at this point, your life will no longer be controlled by debt.