There are literally thousands of books written about getting out of debt. There are thousands of blogs updated daily with tips and hacks to getting out of debt. In all honesty, there’s so much info out there about getting debt free, it’s a little bit overkill.
But in the end, regardless of how much literature is published about getting out of debt, it’s really an extremely simple concept. And understanding this concept is essential for financial security — if you’re up to your eyeballs in debt, it doesn’t matter how much gold or precious metals you own — you’re not financially secure.
Here’s the only way to ethically get out of debt:
Pay What You Owe
Yes, it’s that simple. I’m not trying to be clever — it’s literally just that simple. Almost every “debt reduction” and other “debt-free fast” scam ignores this, because it’s easy for us to want an easy way out. There really isn’t one. If you owe something, you should pay it off — you owe it, after all.
Of course, there’s only one way to get debt free, but that doesn’t mean there’s only one way to pay what you owe. There are several methods to use, as described below:
- Make More Money. Find away to get a second job. Find a money-making hobby. Get a raise. Make money online. But whatever you do, take all of the new money and deposit it into a savings account, and only use this money to pay off your debts. This will speed up your journey to getting out of debt.
- Save More Money. Get rid of your TV, newspapers, magazines, stop attending movies, eat cheaper food, give up expensive coffees — cut back on your spending. Take all of the money you save and deposit it against your debt. This will speed up the trip to debt freedom.
- Pay Automatically. Get a debt consolidation loan. It’s not popular, but it gets the job done. If you make that one payment, plus a little extra, you’ll get out of debt. I’d suggest paying twice what you’re required, this way you’ll get out of debt in less than half the suggested time by the debt consolidation company.
Of course, remember: this is all assuming that you cut the problem at the source. If you have credit cards, rip them up. Buy a cheaper used car instead of a brand new one. Don’t go into more debt — get rid of your current debt. I’ve been debt free over a year, and it’s a liberating feeling. Good luck!
Tags: debt, get out of debt, how to get out of debt, out of debt