What is the Best way to be debt free?
@keeping_jeremiah2911 (160)
Philippines
May 23, 2008 2:34am CST
I'm sick and tired in this kind of situation, i wanna be free from debt but i dont think theres still a way out to be debt free. I'm ashame not to pay my debt on time thats why whenever i have a due date i ask someone to lend me a money and once again another debt created...So instead of erasing my debt it becomes more worse because of the way i handle it. Can anyone give me a piece of advice?
1 person likes this
10 responses
@TheManager24 (1302)
• Philippines
9 Jul 08
The best way to be debt free is to avoid the cycle of borrowing and paying. The interest kills. I would suggest the following -
1. Find the debt that has least interest
2. Gain the knowledge on your debt stipulations. Some lending institutions may have higher interest when you fail to pay on time
3. Call lending instititions of you will be unable to pay for the month for you to see if they can move the due date for you without incurring penalties
4. Pay institutions with higher interest. Again, interest kills.
5. Live within your meeans.
6. Avoid the dreadful cycle.
I know there will be a lot to add on the list. 
@rirbry (353)
• Malaysia
23 May 08
You can try to throw away all your credit card and try to make extra income, and the best of all is saving
@tigertang (1749)
• Singapore
10 Jul 08
You are utterly right. Credit cards are very dangerous tools for those of us who cannot control our spending habits. The credit card is probably the most expensive way to borrow money in a legal fashion and if you don't manage your credit card debts, they can give you similar problems to the case that you chose to borrow from a illegal money lender or loan shark.
Credit card companies love people who only pay off their minimum balance rather than their full monthly payments. The reason for this is that allows them to charge you more interest as you roll your debt over. Debt is a bit like a snowball rolling down a hill - it gets bigger and bigger until you can no longer manage it, so that's why you need to deal with it before it gets too big for you to control.
I learned the hard way. The bank allowed me to take out an easy credit card. I used it and forgot that I had to pay it off and somehow I let it get to a point where they had to send a lawyer after me. Luckily for me, the amount was not exactly big but at that stage I was not earning money and it took me over a year to clear the debt - after they sent a lawyer after me.
The only way to deal with debt is to admit that you have it, and then to deal with it. It's best not to get more debt to pay your debts. I know a guy who owes, at any one given time, twenty loan sharks money (they charge about 20% interest -A WEEK). Once asked him how he got into this situation and he told me that it was a case of borrowing from shark B to pay off shark A and then having to goto shark C to pay Shark B. Ironically, the news papers then reported that the situation was similar with people who used credit cards.
So, talk to your debtors. Show them you are sincere about paying them off. Work out a payment schedule. Let them make that bit extra. And then stick to your payment schedule. Discipline yourself to live within your means. Cut unnecessary spending and do more things that will make you more money and pretty soon you can control your debts and get out of them. Don't let the excuse of shame dig you into a deeper hole.
@mykmari_08 (2464)
• Philippines
11 Jul 08
I feel we're in the same boat regarding your financial status now. I'm already married. It's been more than five years since we got married and we do have a daughter who's turning three next month. I'm the only one working in the family and we decided not to hire a nanny for our child; instead, my husband takes care of her and stays at home.
I do have a lot of dreams not only for myself but more for our daughter. It will only take a couple of years from now before she'll be attending classes. We still haven't got our own house and land. We're currently in the process of paying off all our financial obligations from loans and credit card companies.
Hopefully, and God-willing, we'll be able to realize all of our dreams by next year.
I know how it is to be in debt and I feel the same way as you. But it's easier to monitor your finances when you're single. Back when I was still one, I never worried about bills not getting paid or borrowing from others. To be upfront and frank about it, I was the one lending them.
@masukizta04 (30)
• Philippines
10 Jul 08
"DON'T PAY THEM" then your debt free...hehe i've done that many time...guess what? they keep on sending me some notice.., supoena...hahaha..but now? i guess their all tired...no letters, notice, supoena...and i dont have car, electricity , water, friends, neighbors...isn't that wonderful? =)
@Rshell (4)
• United States
9 Jul 08
Well first of all you need to start by asking your credit card company to lower your interst rate. Alot of times they will not do it unless you ask. Secondly never spend the whole available amount in your card because that is just more interst and finance they can charge you.Thirdly try to pay some of your monthly bill each week to cut down on the amount you are paying on due date this will pay down the principle and lower your finance charges.
want to know more you can email me at drshell1981@yahoo.com
@krysande (9)
• United States
12 Jul 08
I believe the best way to be debt free is a mixed approach. You have to 1. spend less than what you bring in and 2. you have to garner more income. Also, if you garner more income, you should pay your bills early that way (in the case of credit cards) your min that you have to pay will be less. I'd also make sure that you set a little aside to pay off the folks you owe whenever you can. I had a similar situation when I first graduated school, As soon as I was able I paid my mother back for money she gave me when I couldn't find a job. I hope this helps and good luck to you.
@excellence7 (3655)
• Mauritius
9 Jul 08
I think the solution to this is by being more attentive to the least detail. That is, cut cost at home- by avoiding too much of electrical consumption, water consumption, gas consumption..try to re-manage the household in a better way so that it becomes cost-effective. Try to live on your own means. And make a new plan afresh..re-plan the cost per month including all bills and requirements. Work to pay your debts. Don't expend on useless things or window-shopping. Buy exactly what is needed to manage the households as per your plan. You will find that your debt will start reducing. You see, by living temporarily in discomfort, you are arranging for life-long comfort. So just be patient because patience is a virtue :D Best of luck !
