Hello everyone!Myself voidd is back after a long time.Hope you all are doing great.
This will be my first post on the leofinance platform.
It is an amazing platform for those who are interested in finance and crypto as well.
So let's get started.
How to overcome debt?
No one really tries to get in debt.Its the situations or circumstances that puts a person into it.However getting out of debt is possible.Below are some steps which may help to overcome debt.
Source-pixabay
- Emergency fund
Having an emergency fund is very important for uncertain situations like loosing a job,accidents etc.Every person should have an emergency fund which should consist minimum of their 1 year salary.
2)Track down your unnecessary spendings
The next step to overcome debt is to track down unnecessary spendings.One should figure out where the money is going.He/she should spend the money economically until the debt is fully paid.
Some steps to track down the unnecessary spendings are
i)Keeping notes in a notebook
ii)Keeping receipts
3)Set up a economical budget
Once the unnecessary spendings are tracked,the next step is to set up a economical budget.The tracking of spendings will show you places to cut the unnecessary spendings, you can see the places where you are spending too much.One should make the budget keeping in mind the balance between livability and a strict budget.
4)If you can't afford it without a credit card don't buy it
This is the most common mistake to get into debt when a person borrows to buy something.
The rule is If you can't buy something in cash don't buy it.Dont buy it if it makes you borrow money.
5)Decide how much you can pay each month
One should decide the best possible amount to pay each month to get rid of debt.The more you can pay above the minimum each month,the faster you can get rid of debt.
Source-shutterstock
Its always possible to overcome debt,you just need to take the right steps.
That's it!
Thanks you all for giving me your valuable time.
Stay safe!