Written by Millionaire’s Digest Team Member: Rashi Bhatia
Founder & Owner of: Life Trvia
Millionaire’s Digest Team, Contributor, Beauty, Stories, Successful Living and Travel Writer
Are you stuck in a debt trap? Does your credit card bills and loan keep on mounting? Are you stuck in a circle from where it seems impossible to come out? My parents and I were also once stuck in a similar situation; Coming out of which seemed impossible.
However we did manage to come out of it in a span of a year and a half. I will list some important steps which we took which you can also try to implement.
1. Stop Taking Loans. I know this sounds obvious but there is a human tendency to take a loan to pay off another one and that’s when you get trapped.
NEVER EVER take a new loan to pay off a previous one.
2. Planning. Planning is the key here. Make a list of all the loans to be paid and the sources of income you and the family has. What we did was make an excel sheet for this but you can do it on a sheet of paper as well.
Review the excel sheets daily and weekly. If you do it on a piece of paper, stick it somewhere you can see it daily.
3. Ask for help. Tell your bank or lenders to put you on a payment plan and negotiate for lower interest rates. This will take off the pressure of paying everything at once or in a short span.
4. Control Expenses. Reduce your expenses, make a list of all the things you spend money on. Sometimes there are things that we are spend on, which are absolutely unnecessary. We did this for approx. two months and were able to evade all the unnecessary expenses.
5. Alternate Sources of Income. If you feel that the sources of income charted down in the first step are not enough to pay off the loans, then find some alternate sources of income.
I know this is easier said than done. Remember that it is not a one day job. It requires persistence and conscious decisions each and every day.
It is possible.
It is the planning which makes the difference and sets you on the right path.
Article Credits: Rashi Bhatia
Millionaire’s Digest Team, Contributor