Know How to Get out of Debt – Debt Nirvana

The massive burden of debt is a plaque on most of people these days. It keeps us behind the bills for so long and the stress it causes is enormous.  Most of the people get frustrated and face a hard time getting out of debt and often they give up. It’s not a hopeless situation and you are not alone. All it needs is a little commitment, patience and willing to change your lifestyle and you can be debt free soon enough. Here are few simple tips about paying of your debts: Credit card debt: Paying credit card debts can be a stressful task. Make a list of all your cards and start paying off one with maximum interest rate, and slowly coming to the one with least interest rate. During this time, put a stop to using your cards and instead use green stuff to make payments. When you run out of cash, that’s it. It’s that simple. Emergency Savings: in case of emergency, people usually depend on credit cards or they borrow money from a friend or relative. But isn’t that getting you into more debt.  So always keep an emergency fund which will help you in case you are not working for some time. Start small and save atleast 20% of your income monthly. Simple budget:  Make a realistic budget for your monthly expenses and watch out for all the unnecessary expenses.  Write it down on a paper, total it and see if there is something you can eliminate to reduce your monthly bill. Organize your debts: Prepare a list of all your debts in an order which you think will work for you. Usually, it’s better to start with smaller interest rates and gradually with larger ones. It’s important so that when you pay some of your debts with smaller interest rates, you develop a belief that paying off debts is not all that difficult and you can deal with debts. Excess cash: Try to make some extra cash and throw that to your debts. You can work at extra shifts at your office or maybe you can do freelancing or maybe part time jobs to pay off all your debts. This can help you getting out of debts early.

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