There are many things we want to buy when we are young, and this is why once we finally get a job and start earning money, we tend to get excited – sometimes overexcited about spending. We buy things left and right, we spend hard-earned money almost instantly and since we are already earning our own money, we need to pay our own bills too.

With this kind of lifestyle, most young people tend to have expenses higher than income. To meet the needs, we start to borrow money from friends or family then comes the credit card that lures people in believing that we can afford things even if we really can’t.

Then, there’s also loans – personal loan, car loan, salary loan, housing loan – name it, we got it. Most young people spend their 20’s and 30’s accumulating all these debts until one day, you ask yourself, when will all these debts be finished. In this article, we will share some tips on how to be debt-free before you turn 40. Isn’t it nice to spend your 40’s as relaxing and worry-free as possible because you no longer have debts to think about? Well, here are some considerations:


 Analyse how much is your total debt

First of all, you need to know exactly how much are your debts. Truth hurts indeed but it is important that you face the problem so you can solve it once and for all. You should list down everything from your credit card bills to loan or mortgage or if you owe someone money. This way, you can strategise which ones to pay first and also the schedule of payment for each.

Focus on paying one debt while paying minimum on others

One strategy that we can suggest is to focus on one debt while paying minimum on others. You can either choose the smallest one to pay first or the highest one. But it is highly recommendable to start with the smallest so you can cross it out quickly. Once paid, you can focus on to the next one on your list.

Always pay on time

You should always make sure to pay on time to avoid late payment fees and to avoid paying for 2 months at once.

Find extra source of income

Of course, you need to find a way to increase income so you have more budget to use in paying off the debts. You can find a freelance work that will help you pay the bills.

Do not add more debts

Lastly, make sure to stop adding more debts to finally end the loop. You should pay one by one and then avoid adding more debts. Once you’ve paid everything and you can totally say that you are financially in control then you can start to invest. This way, you can secure your future. You surely do not want to go back to being drown in debts again. It is best to talk to reliable brokerage firm to learn how to start. Having lots of debts can have bad effect in one’s physical, emotional and mental state. When you have so many debts to think about, you tend to have a hard time sleeping because all you can think about is how to pay this and that. As early as possible, we need to do something. Make sure to consider the tips that we discussed here to finally breakout from the misery of having lots of debts.


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