Are you currently getting out of debt the best way you can?
While you may have all the reason to be disheartened, do not be. This may seem
like a mission impossible. But the truth of the matter is, this mission is
workable. There are at least five steps or ways by which this can be done. They
are listed below.
File bankruptcy – This is the easiest way to get rid of your
financial liabilities. Most entrepreneurs who are depressed and overwhelmed by
the sudden turnout of events in their businesses file bankruptcy to avoid
lawsuits from their companies and individuals to whom they owe money. However,
you need to check out related laws on this. Authorities would conduct their own
investigations before granting any opportunity on getting out of debt.
Borrow money from a family member or relative – Oftentimes,
loved ones are great sources of loanable money without interest. This is better
than borrowing money from firms. Interest rates can create new debts on your
part. Even though you are borrowing money from a relative, it is best to put
into writing the terms of agreement you and your loved one will reach. Be ready
for possibilities of misunderstandings too. For one, another family member or
relative might question your ability to pay on the agreed deadline.
Increase your income – Look for additional job opportunities
other than your current business or work. More than one source of income means
increased ability to cover your financial liabilities. Also, consult a tax accountant. This professional has the ability to check out and add other legal
deductions from your taxable income. The extra dollars you can save from this
would be helpful enough to cover a portion of your debts.
Sell your possessions – Do you have anything valuable inside
your house? Have a clean-up drive during the weekends. Check out pieces of
furniture, jewelry or branded bags and clothing which are equivalent to a
substantial amount of money. If you have not used them in a year’s time or if
you do not see yourself using them in the near future, it is best to part ways from
your possessions for a better cause. This can be very painful but just think of the
huge percentage of debt that would be out of your head. Another variation of
selling that you can try is trading off. Perhaps, you own a top of the line
car. You can trade it off for a cheaper model. You can surely get a sum of
money from such a trade-off.
Stop increasing your debt – One example of this is using
credit card to buy new appliances, gadgets, clothes or surplus of food which you
may not need at the moment. If you are serious about getting out of debt the
soonest possible time, stop using your credit card and start using cash for
your purchases. This will force you to buy only what you need and save enough
money to cover pay off all your liabilities.
