It is easier to get into debt than to get out of it. Most times, you incur a loan in a matter of minutes while it could take months or years to pay it off. With the increase in online loaning apps, falling into the trap of taking loans is now very easy and at the comfort of your home without even visiting any office or filling any form.

When you incur debts, it is like you are stealing from your future especially when they are incurred on consumable expenses. Getting out of debt is one of the best feelings on earth, in fact, that breath of relieve is worth more than gold.

The stress of taking calls from your creditors and explaining why you haven't paid your debts is not healthy. Like waking up to emails and reminders about loan repayments. I have seen people who died while thinking about the huge debts they incurred, some even commit suicide. Some people have to run away from home so that their creditors won't find them. I am sure this is not the type of life you want to live in the year 2021.

There are many ways to get out of debt without stress, this article has some tips to help you pay off your debt faster:

1. Stop incurring more debts

The first step to getting out of debt is to stop accumulating more debts, else it will be harder to come out. Like the popular proverb "when you are at the bottom, stop digging". Avoid taking loans from your family, friends, banks and other financial institutions. This step will not cut your loans but will help in the process of getting out debt so you don't accumulate more.

Furthermore, avoid taking loans to pay off another loan. If you do, you aren't paying off the loan, you are just running round the circle. For instance, Mr A took a loan of $200 from XYZ limited to repay in five months, he couldn't pay off the debt as at when due, so he took another loan from Mr B to payoff the loan. He may think he has paid the debt, but he is still swimming in it because he still owes Mr B. Getting out of debt is becoming totally free from it.

2. Organize your debts

You can do this by calculating how much loans you have, then arrange them according to priority so you will know the ones to pay off first. You will need to list the amount you owe, the interest payable, and the monthly least payment on each loan. Debt-repayment plan is easier to develop when you have all this information available.

3. Increase your monthly payments

If you can pay more than the monthly minimum on your debts, then you will get out of it faster. Let's say you have a debt where you are to pay $100 monthly for the next six months to complete the repayment, you can increase the monthly payment to $150 to help pay the debts faster. Now you will have four months to payoff instead of six months. Interests can exponentially increase the timeline you have for paying off your loans. To get out of debts faster, try to increase your monthly payments.

4. Build an emergency fund

Having an emergency fund is necessary when trying to get out of debt, it stops you from incurring more debts when life happens. It is advisable to have an emergency fund that can take care of your needs for at least six months for unforseen incidents. Unexpected or unplanned expenses might be the reason you are in debt; an emergency fund will take care of such expenses till you get back to your feet so you do not borrow.

5. Have multiple sources of income

Building multiple streams of income is important if you want to get out of debt and avoid living paycheck to paycheck. Some people have only one stream of income which is usually their salary. An extra source of income will help you settle your debts faster. Extra source of income could involve starting a side hustle, getting a part-time job, or selling products online, then you use the extra money you earn to pay off your debts.

6. Change debt-enabling habits

To effectively manage your finance, you will need to cut down on your expenses to the least. The fact is, many people spend more than their monthly earnings. Once you keep an eye on your spending habits, you will be able to cut off the excesses to enable you live economically.

You can do this by replacing paying for DSTV with GOTV, cooking at home and not eating out, and cut the amount you spend on data. Just try to live below your means for as long as possible until you pay off your debts.

7. Live within a budget

Budget is like telling your money where to go instead of wondering where it went. One of the main reasons most people run into debts is because they do not know how to control their expenses. To become debt-free, you need to take charge of your personal finance and budgeting is the best way to do this. Create a budget then stick to it and cut off the excesses in your expenses. Don't buy things you didn't budget for no matter the discount.

CONCLUSION
Getting out of debt is a difficult task but by being disciplined and practising the tips stated above, you will do it in no time! Remember, when you finish paying your debts, avoid those habits that made you incur them.

Source: https://www.trendingaccounting.com/2021/01/7-ways-toget-out-of-debtin-2021.html

I think bubu need this advice more

Second TC


Gradually, m getting there

. Good morning yall...i dedicate this slot to MTN Nigeria

I think Buhari and his team needs this more than every Nigerian. Please cc Buhari in this article.

I would be blunt with you.

You have to avoid debt at all cost. Borrowing might be easy but paying back with interest at a stipulated time is really difficult. Sit down and ask yourself , why do I want to spend more than I earn. I won't die if I don't get that frivolity that is irking my soul. If you think you can't do without it. Just try and do without that thing and see that the heavens won't fall.

If you want to borrow money it should be for capital mobilization. The prolification of loan apps for easy cash should send a sharp warning to you that people are cashing out big time from debt. People are getting wealthy borrowing you money and being hawkish about funds in your account because you gave away all your information while registering.

All I am trying to say is that you should try and live within your means. Don't eat that ice cream on a debt. Don't borrow to impress your babe because you want to belong , premium tears await you when it's time to service your debt. You are not an american that you should live in debt. Avoid debt so you would have a little peace of mind when someone knocks on your door.

ignis:
b

b for buhari

Spend less time online if you ain't making money there

Stop impressing everyone!

kenbee:
Spend less time online

Stop impressing everyone!

People make money online.

If money nor dey your hand all these ones na story

May God open ways so I'd secure funds and settle my debtors this year before anyone embarrasses me

Hmm, good points OP.

May Allah guide our leaders and direct our affairs in the right way. Aamin

Run away

This article nailed it especially the part of the loan apps. Those companies can send people to early grave and you can imagine why many of them are springing up now.

Please who can teach me how to comment on Nairaland

Living within your means is the best way to be out of debt...

FG needs this article than any of us here.

I think being prudent supersedes all the aforementioned

Nice informations
Thanks

8 ) Stop having more kids

Okay

But how we go get money to settle the debt we don already enter?

Sure!

ignis:


People make money online.

Make as much money as you can and you won't need to borrow from anyone

Nice article.

Starting a side business
as suggested by the op is very good.
There are several businesses u can start
online today without breaking a rook.
Infact less than 10k is more than enough.

You can also read this book
'The Richest Man in Babylon'
This book provides a proven way to
get out of debts and build wealth.

PoeticComb:
I would be blunt with you.

You have to avoid debt at all cost. Borrowing might be easy but paying back with interest at a stipulated time is really difficult. Sit down and ask yourself , why do I want to spend more than I earn. I won't die if I don't get that frivolity that is irking my soul. If you think you can't do without it. Just try and do without that thing and see that the heavens won't fall.

If you want to borrow money it should be for capital mobilization. The prolification of loan apps for easy cash should send a sharp warning to you that people are cashing out big time from debt. People are getting wealthy borrowing you money and being hawkish about funds in your account because you gave away all your information while registering.

All I am trying to say is that you should try and live within your means. Don't eat that ice cream on a debt. Don't borrow to impress your babe because you want to belong , premium tears await you when it's time to service your debt. You are not an american that you should live in debt. Avoid debt so you would have a little peace of mind when someone knocks on your door.

So true! Debt is how the poor keep getting poorer, and the rich keep getting richer.

Welldone motivation speaker

This times are hard

Nigeria as a country is in dept that even the next generation won't be able to pay

Femi Adeshina and Uncle Garba need to hear this and tell Baba Buhari....who no go knoweth Not!

Just have a source of income, shikena...

invest

Debt kills slowly, the way it's killing Nigeria now. Nice piece by the way.

Hmm....In Nigeria of today, if you are an average earner, it's difficult to do certain capital projects without taking a loan.... cooperative, banks e.t.c.

I think studying the terms and conditions of such loans with repayment plans that will not affect your basic spending is key. Don't collect loans that will hook you. Be disciplined and ensure you use the loan for that capital projects you collected it for.

Make we no lie for ourselves, when will someone earning #100,000 for example build a house He needs to join a cooperative society or take some little bank loans to start off.

Loans sometimes make you stay truthful to your envisaged savings plan. Most people on their own cannot be discipline about savings. So when you collect the amount you intend saving to get some project done, use same to do the project and pay without stress.


Key word: Don't collect more than you can repay at stipulated time.