Drowning In Debt – 4 Ways To Get Your Head Above Water

You feel that you are living in a nightmare. Every single day, credit collectors are calling you. In fact, some are threatening you. Of course, you want to get out of debt. But the concern is, you don’t know where to start.

Worry no more my friend. This short article should help you pay your debt. I’m not saying that it’s going to be easy. I’m not saying that it’s going to be fast. But the good news is, if you keep the tips in mind, you would surely be debt free sooner than you thought.

Determine your debts

It is important that know your debts. List down how much and to whom you need to pay. Of course, check the terms of your debts. By doing so, you can see which ones are needed to be settled first. List down everything and figure out your priority. Start paying from the top.

Get your scissors

Don’t end your life! It isn’t the end of the world. You just need to end your debt, that’s all. If you have credit card debts, I suggest that you literally cut it. That’s to prevent yourself from using it in the future. From now on, always use cold cash.

Record all your expenses

I know that this can be a tedious job. However, you can benefit from it. If you record your expenses, make sure that you categorize it properly. There should be a category for the ‘necessities’ and the ‘extras’. The necessities are things or expenses that you can’t live without. Examples are food, water, rent. Extras are your indulgences like new shoes, new bags or new phone. Record everything even the littlest details. Do this for one month and analyse your spending behavior. Seeing that you have a lot of extras should push you to rethink about your spending manners. These extras can be used for your debt.

Do the steps above religiously and you will be debt free in no time.

Lastly, live within your means

Maybe you are being pressured by your friends or relatives. You believe that you need a good and expensive mobile phone just because everyone has their own. That shouldn’t be the case. Live within your means can be a challenge most especially if you are surrounded by people who live luxuriously. But the key here is to be contented. Money isn’t everything and you must learn to be happy with simple things. If you live simply, you won’t need to spend so much on luxurious things. And because of that, it will be highly unlikely to face future debts.

Samantha Green faced serious debts few years ago. Luckily, she found her way out by being a smart spender. Right now, she writes for www.monkey.co.uk. She’s also a believer of insurance policies and thinks that it will help people in the long run.


  1. Clyde Mounce says

    Thanks Mitz for the tips. As a parent of 5, no matter how I do the budget, I can’t seem to get out of debt. Things are different when you have youngsters to feed, send to school, and get them well dressed. Fortunately, we haven’t got any serious debt that would push us to file bankruptcy.

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