4 Ways to Free Yourself from Debt

4 Ways to Free Yourself from Debt October 14, 2010

Getting out of debt can be tough, but these principles can help you get through it much easier.

1. Start with a plan.

Everyone’s debt load is different, so the plan you take may not be the same as your friend next door.  The one thing you DO have in common is that you will both be on the path to become debt free if you start with a plan.

It’s good to start by listing out all the debt you owe.  Sometimes school loans, hospital bills, and credit cards can add up and get lost in the shuffle.  Take some time to list out all the debt you owe and then start prioritizing.  Look at the due dates, total amounts due, and interest rates and make a goal to pay off the debt by certain dates.  If you can organize your debt and create goals to pay off each item, you’re on the right track.  You’ll also stay on track with your debts if you know how to make a budget.

2. Change your mind frame

How can you expect to stay out of debt if you don’t address the reason why you went into debt in the first place?  Do you have too much credit available to you?  Cut up a couple credit cards.  Do you find yourself window-shopping every Friday?  Slow down with the visits to the mall…you don’t need the added temptation.

This is probably the hardest of the four tips, but it’s crucial if you want to become free from the debt monster.

3. Become accountable

Uh-oh…the A word.  Sometimes the best motivation for me to complete a task is when someone is counting on me to do it.  The same is true for paying off your debt.  By sharing your goals with a close friend or someone you trust, the pressure to meet the goals can be the very thing that keeps you on track with your debt-free goal.  Sweeten the pot for the person keeping you accountable and promise to do something like mow their yard if you don’t meet the debt-payoff goal for the month!

4. Give

One of the best ways that we can learn to live on less is to give a portion of our income away.  Now, you might think I’m crazy for suggesting to give or to tithe while you’re trying to pay off a massive load of debt – but I think it can help us (especially with changing our mind frame).    I’m not saying that you have to give away half of your income – the amount you give is up to you.  In fact, the amount you give really doesn’t matter…it’s the principle of giving that really counts.  I think that our mind frame can shift even through giving to others in the form of our time, volunteering, or just listening to others when they need an ear to vent.

What are some other principles you would suggest for those starting to get out of debt?

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  • Tim,

    I don’t see too many “get out of debt” articles that list giving as one of the steps. Doing so really will change our mindset…less on ourselves and more on others. I like it!

  • Tim

    Thanks Joe – I’m glad you like it!

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  • I am agree with your suggestions to be free from debts and I will follow it as it is my need in time.I hope I will be able to reduce my debt burden after following such tips.

  • sameday loans

    Great way you have suggested for being free from debt .I am in heavy debt right now so it is very valuable for me. Great information you have shared.

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  • It is very difficult to get out off debt.But with the help of disciples given in the blog one can get out off debt very easily.

  • Julia

    People also need to learn the difference between a want and a need. Then they need to be sure that they have money to purchase their true needs before they purchase the things they want. Too much greed and instant gratification lead to very large debt problems. Less is often so much more.

  • george waweru

    i m in serious dept i need your help please

  • george waweru

    pls sent me a free copy i m in serious dept and cannt find my way out

  • george waweru

    i really like your artical on 4 way to free yourself from debt you re doing a great job thks

  • Anna

    Thank you for the tips. I am a big fan of this blog and like almost everything that you recommend. My friend was in debt for a long time and couldn’t find a way out. But then everything changed when he has decided that he deserves a better life without any debts. He planned his budget, wrote all the expenses down and tried to save money to pay off his debts. And really, when he started counting and writing down everything has changed. He understood how many debts he could avoid and learned from his mistakes. Now lots of people share their ways of paying off the debt and there different efficient methods to fight financial crisis. So I think that the most important is to have a strong wish and really want to become debt-free.

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