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7 Tips to Be Debt Free in No Time

By Edited Feb 12, 2016 0 0

There is an ever growing desire in the world to day to find a way to live a debt free lifestyle. After years of paying for everything with credit, it is easy to see why people are so tired of paying interest and building large amounts of debt for themselves. You are probably one of the many people who have decided today is the day that you are going to take action to stop living above your means. This is an excellent choice and one that you will not regret making. It is not hard to become debt free. It only takes a few simple changes to your life.
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Tip One
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Cut up and throw away all of your credit cards to be debt free. When the temptation is in your wallet to buy something now then pay later, it is too easy to forget your goal to live within your means. That is why the first step makes sure that you will no longer live above your means. One of the most important steps that you will do is to rid temptation to stay on track to make your goals a reality.
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Tip Two
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Find out and list all of the debts that you currently owe in a notebook. You will want to have an accurate balance of exactly what you owe, what the interest rate is, and what payment is made every month. You can not be debt free without looking into and taking account of all of the debt that you have already racked up. This will give you clear picture of exactly what you need to do to get yourself of the ever revolving problem of over spending.
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Tip Three
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One of the hardest decisions that you will have to face on the road to living debt free is what road you will need to take to get there. With the total amount of your debts in front of you, it is time to make some hard decisions. One of these will be whether you can pay off your debts or if filing for bankruptcy is the only way out. This is something that is not the same for everyone. Just remember that each decision comes with its own set of pros and cons that must be weighed before the final choice is followed.
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Tip Four
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If you choose bankruptcy, it is a good idea to find a reputable lawyer to handle all of the legal parts of the proceedings. This is the fastest way to be debt free, but it also carries some of the worse consequences. It will actually ruin your credit for up to 10 years. Now this may not seem like much if your credit is already ruined by the financial state that you are in.
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Tip Five
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Repayment is always a good option and one that works out well for many who want to be debt free. You can often call the people that you owe money to and try to negotiate lower interest rates or even a lower pay off. You never know what may be possible if you do not try. The thing is to always see what the companies that you owe can do to make it easier to repay your debts.
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Tip Six
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Determine a monthly budget for yourself that will cut back on spending and use the money to pay off what you owe to be debt free. This will make you be aware of every cent that is coming out of your wallet. To live debt free and by cash only method, you always need to know exactly how much money you can spend. There is an art to living a cash only existence, but once you get the hang of it, you will wonder why you did not do it sooner.
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Tip Seven
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One of the ways to make sure that you never use credit again is to start building a savings account. This will be where you go to when you need to make a large purchase of any type. Many people say that they only keep credit cards around in case of emergency. If you have a savings account, you can take the money from there for any emergency that may come about. This is how you can be debt free and still make sure that you are ready in case of anything.
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Being debt free is a choice that many are starting to find is really the only way to live. After years of living in debt up to their ears, they have decided there must be a better way. This is a decision that you too need to make and take action on today. It is through taking the first step that you will alleviate the stress that comes from being in debt. So what are you waiting for? Today is the day to make it all a reality.
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