Some people are currently neck-deep into debt. And they wonder if they will ever come out of it. Whatever has a beginning must have an ending. Sometimes we get devastated and confused and sometimes defeated on how to start tackling it. There are step-by-step recommendations you can follow. You’ll find how easy it is that you’ll wonder how you’ve never seen this truth before now.
The first thing we have to look at is how to avoid falling into trap of indebtedness in the first place. Because indebtedness began one day. The traps are always there. But it takes discipline to look away and stay distracted.
To avoid getting into debt, let’s consider the following steps:
1. Find yourself something doing.
The first step is to be gainfully employed or find a steady inflow of income. For you to sustain yourself, you must have an inflow of income, at least. It’s one thing to satisfy your needs and a different thing to crave for things beyond your income. That leads us to the second step.
2. Live within your means.
Like I said, attending to your needs is one thing, then craving for your wants is another thing. It takes discipline to stick to your needs in accordance to your level of income. Identify your level and position per time. Be in reality and at peace with where you are at the moment. Good things don’t finish. Some made their money in their 20s, some in their 40s, some in their 50s, and even some in their 60s and 70s. as long as you have the dream, the drive, and focus, you’ll get there.
3. Plan within your means.
Make a plan within your income. Your rent, feeding, miscellaneous. Ensure you pay your 10% tithe. And most importantly, remember to take aside 10% savings which you must not touch, no matter how daring the need is. Live in the environment that’s affordable to you at the moment. Put whatever you have in good shape and in good use to avoid having to replace property you should have used more carefully. Let luxury remain in the confinement of your dream for now.
4. Plan to increase your income.
Do not feel comfortable in your position. Strive to improve. Research on the areas to improve on your skills. Research on changing profession if need be. Whatever happens, make sure you are currently doing something to improve on your income. Remember, there will be temptation to increase your spending. It takes another level of discipline not to shoot out into unnecessary spending. You still have a long way to go. It’s time to increase your savings if you’re wise. So, be wise.
If you can put into practise all we’ve said, you have no business being in any debt. You would have brought honour and respect to your self and your family.
But if eventually you find yourself in the mess, don’t be discouraged.
There’s a clear way out. Let’s observe the following steps:
Find yourself something doing.
Everybody must not be a medical doctor or a lawyer. Engage in a genuine hustle, no matter how demeaning and undignified you may view it to be. It is better than doing nothing or begging, bringing more disrepute to yourself from your creditors.
Draw a simple settlement plan.
Remove 10% for tithe, 10% for your savings, 60% for your household upkeep (rent, feeding, miscellaneous), and 20% for the settlement of debt.
Approach your creditors.
Meet with your creditors. Let them know how small your income is. Explain and come to an agreement on how you intend to offset the debt.
Stick to the agreement.
Strictly maintain the arrangement. Let your creditors see a different you. They man see you as a changed man and will end up trusting you again. Some may even decide to further do more business with you. Regain your lost respect and dignity.