How to Live Debt Free

by on February 9, 2011

A debt free life is very easy to maintain. When you learn to pay only the utility bills, then it is very easy to maintain debt.  There are few points mentioned below which can help you to maintain a debt free life.

  1. Stop Adding Your Debt: Do not add more debt to your existing one. If you cannot stop yourself from using your credit card then cut them up. You shall also stay away from Pay Day Loans.
  2. Always Admit Your Debt: You shall always admit your debt and live modestly. You shall not dine at costly restaurants. You shall stop buying new clothes. Always try to be satisfied with the things you have with you. It is just a temporary issue and you will be able to start spending after three to four months.
  3. Calculate Your Total Debt: You should always total up your debt to avoid confusion later. Include all the bills and prepare a list of all the debts.
  4. Always Pay With Cash: You shall always pay your debt by cash. You can also use your debit card for this purpose.
  5. Be Good To Your Creditors: Always ask your creditors to make a plan for you. You shall never ignore them. Always be honest and pleasant while handling sensitive issues like debt.
  6. Plan A Way to Repay Debts: you shall always chalk out a plan to repay your debts. You shall always target to repay one loan at a time. Focus on one loan and get rid of it first. You can also use the “reverse laddering” approach to pay off your debts. You shall have distinct focus to pay your debts. This will help you to curtail heavy interest rates.
  7. Always Redirect To The Next Bill: Whenever you are done with one bill roll over the extra money to the next bill. This will help you to maintain a continuous paying habit.
  8. Get Frugal: You shall always try to collect money whenever possible. Make less shopping, buy less expensive products, and go for cheaper brands. Avoid drinks, parties, functions, movies, and hangouts. This will help you to save a lot on your marketing. You can eventually pay your debts slowly with the help of these. Always remember that this is a temporary phase and you can enjoy your life once again after you are debt free. Do regular hard work at your workplace to get bonus and incentives. Every little effort will add up to help you live a debt free life. Follow hardships in life until you are debt free.
  9. Be Conservative with your Utilities: You should not waste resources. Just utilize those things, which are essential. Keep the extra things away as of now. Try to conserve money by this technique.
  10. Change your Attitude: You shall change your attitude towards spending. Always try to save money even if it is a dollar. Always remember that conserving single penny everyday can make you debt free one day. Always try to save.

{ 4 comments… read them below or add one }

Debt Management Plans January 15, 2012 at 9:23 am

This is excellent advice and very well written. It’s also the kind of thinking that we try to instill in our debt management clients. We have produced an Income and Expenditure Spreadsheet that’s freely available to download to help people budget efficiently and highlight any areas that savings can be made.


Richard Hughes July 2, 2012 at 8:42 am

This is great advice.

I love how the piece is written too – almost like 10 ‘get out of debt commandments’.

I’ll certainly be revisiting this blog again!


Colin April 10, 2013 at 9:01 am

Nice post! I think point 2 is crucial. Don’t just shrug off debts – it will only make things worse. Cut back for a little while and splash out when you can afford to, it makes sense! Splash out when in debt and well, you face bigger problems with far more serious consequences.


Daniel Buckley May 15, 2013 at 9:10 am

Great Post! I ran away from my debt for way to long but thanks to the help of a debt solutions company ( ) I now have my finances in order!


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