How To Get Out Of Debt
A question that is often asked is how to get out of debt. The answer is not quite straightforward – however, there are answers and hope for everyone. You will find useful and simple information throughout this website and as surely the sun rises each day this page is your road map to finding solutions.
Make no bones about it, getting out is debt is not easy. You are going to have to THINK, PLAN and ACTION a few things. However, it can be done. Many people have got out of debt and that includes me.
The 2nd most popular question I how to get out of debt quickly and can it be so? Unless you win a lottery, you are not going to be debt free tomorrow or next week.
Let us continue and find out what debt is and how you can be debt free. There is light at the end of this tunnel. How wonderful would you feel is you went to the ATM and there was enough for anything you wanted?
Table of Contents
Is All Debt The Same?
For some reason, many people believe that a mortgage is not a debt. The reason being is that the overlying asset makes it so. It is a debt until you have completely paid off your mortgage. Do not think that equity is money in the bank. Only cash in the bank and fully paid assets are indeed assets. To discover if you have a debt burden, ignore anything you have that is attached a loan. Houses or cars or time shares or loans owed to you.
This means that nearly everyone, apart from the very wealthy and extraordinarily savvy are in actually in debt. You could become savvy and by your own actions – wealthy.
Next; some debt is dearer than others. The better your credit rating the better the cost of borrowing. Here is another of our obvious tips. Using cash that you have earned or saved has no cost of borrowing.
Overwhelmed By Personal Debt
Many people who struggle to become debt free are overwhelmed because of 2 items. They are not used to seeing big numbers nor do they know how much debt they are in. One of the first things you should do (and I mean must) is to make a list of what you owe, their name, the type of debt and monthly repayment. If you want to get used to big numbers calaculate what you earned in the last 20 years and them double it. That is a rough estomate of what you earned in todays terms.
What Is Wealthy?
Many people think of oligarchs or the owners of global internet businesses. They think in millions and billions. That is true in some sense. However, if your income exceeds you expenses AND you have provisions for years to come – you are debt free, which in turn means you are wealthy.
Wealthy is a personal realization. I know someone who believes he will not be wealthy until he is in the Forbes 500 list. Whereas other friends simply delight in the company of their family and friends, without the need for millions in the bank. Both are working to what is right for them and it is not for us to say who has the best way of life.
You decide what your best “wealthy” is. However, this is all about being debt free and saver abundant.
Saver or Borrower Inclined?
Here is another FACT. You cannot borrow your way out of debt. It is absolutely impossible. If you consider this action, think carefully about it. Nobody is going to lend to you without the standpoint of making money out of your misery. Many people consider consolidation loans if they are working or own an asset. All they do is prolong and increases your debt.
You HAVE to become saver minded. I can hear you screaming, if I cannot afford what I am doing now how can I save. The answer is to save anything you can. Open a savings account, screaming again – everyone says that. And the reason everyone says it is simple; to get out of debt on a low income is still to start saving.
Whenever you receive any income make a promise to yourself to put some into a savings account. 1% or 5% or whatever. It becomes a habit and incrementally you become a SAVER. Do not put the money in a jar – put it into a savings account!
How To Get Out of Debt With No Money
There is a way, and it takes time and a little understanding. Many of you will not understand the inner workings of a finance company, lender, or service provider. On the other hand, I do. I have literally written off millions of debts for 1.000’s of debtors for local and international companies. And I do not mean huge business debts, I am talking about personal debts, car loans and the like.
Here is a brief analysis of why it would make sense for a company to write off your debt and make you debt free. Lenders and service providers have written bad debt into their financial projections. You are now in that group of customers. It is expected and it has been planned for and is in their pricing. It has been written off on their balance sheet. You are no longer a creditor or an asset you are now an expense. That is good news as businesses hate expense and want to reduce them.
To keep your account “live” costs them money. Accountants, management reviews, shareholders and other investors would rather that it be gone and dusted.
However, to claim back certain financial advantages, they have to prove they have attempted to collect the money owed. That is where YOU help them write off your account.
You are going to have to create a financial statement of your own. This is a MUST. If need be, you can have someone help you. The same financial statement can be used with all your creditors – so it is a one off job.
Why do they need this I hear you asking? Quite simply they need a paper trail and a reason. The person to whom you are going to send this to is going to either have rules to follow or a boss to authorize. And that means a financial statement and a letter.
The letter is quite simple and can be used with all creditors. Never accuse anyone of coercing you into buying anything on credit – the lender will feel obliged to protect them. Here is a sample of a debt write off letter. And you must write to the lender. If need be you will have the address on your document. They are obliged by law to deal with it – no matter what the dent collector says.
Ref: you and your loan details
As you will see from the attached financial statement, I am unable to service my account or repay anything to you.
I would appreciate if you would write this account off or give reasons why you are unwilling to do so.
We suggest that you write it to the most senior person you are able to in the company. You can call and ask who the main person is, in dealing with customer complaints. Once again refrain from accusing them of being in the wrong. Remember, it was you who enjoyed the benefits of the loan or service.
How To Get Out Of Debt With Low Income
You are going to have to work your way out of debt. Firstly, try to write off as much as you can, using the above. And if your trying to get out of debt on a low income you will need to increase your income and/or reduce your expenses.
On the face of it, it appears to be a ridiculous question. But think about it for a moment. Everyone (almost) starts off life with no money or truly little. What you do have is SKILL and ABILITY. Either one you were born with or one you learned. Or more importantly one you could learn.
What skills do you already have that someone might pay for?
Think about it – do you pay someone for something? What if you could do that same thing?
What Are The Challenges And Opportunities To Get Out Of Debt?
We are not saying all of these will work for everyone. And maybe some of them will not work at all for you. Here is the clue – they do not work – you have to. Consider them carefully. If need be – you will have to change your attitude. The fact that you found this webpage means you can use the internet to your advantage. This is a meager sample of the things you can do to increase your income or/and decrease expenses
- I watch TV all day. How much time do you waste sitting watching TV and then complain about how rubbish TV is? Or spending money on Netflix etc. you could be using this precious and valuable time on learning a new skill or honing an old one. I have used Udemy, but I am sure they are more tools available.
- Social media is important to me. What if you used this time to promote something profitable to you on social media instead of following someone else’s fantasies? You could be promoting something you love; food, holidays, jewelry, clothes – and earn money. There are literally 1,000’s of affiliate programs you can join? Many can be plugged into your social media or a web site set up very cheaply. Keep reading on how to sign up for an affiliate program and what they are.
- My children take up all my time. That is a hard one. Maybe you can find other mothers and create a co-op. Share ideas and share children responsibilities.
- I eat food all day. If you love food; make it and sell it. Keep it local. Street by street.
- I have no time. If I had a penny for every time I heard that. What if someone said I would give you a car to give them an hour of your time. You would find it.
- I am too busy with my hobbies. Turn your hobby into an income. Can you be an expert in something? Before you go off and try and build a website, there is something you need to do first and it costs nothing. Write 10 articles about your known subject. Each article has to be related to each other and at least 1,500 words. This is not a lot of writing for something you know about. I did this article in one day. 3,500 words. If you can write articles on something you love, you can then have a content marketing website built. On this website you can have adverts and earn money. Just like this website. Some websites earn a few hundred and some 1,000’s per month.
- I have a gambling problem getting me further into debt. Seek help. There are many organizations that will help if you really want to live a different life. You might even make a blog about it. The same goes for drugs or alcohol or smoking. One solution I used for an addiction was Allen Carr. He has solutions for many addictions.
- My daily coffee revives me. There is no doubt we enjoy a coffee. However, buying from a coffee shop has 3 drawbacks; firstly, it is expensive, secondly it is inconvenient and thirdly it is of low quality. A standard cup of coffee has 8-10 grams of coffee. This values shop bought coffee at $300 or £280 per kilo. Can you imagine the quality of coffee you could buy online for even half that price? Nor is it convenient to drive or walk to their outlet and then wait in a queue. You can be brewing at home whilst you get ready for your day ahead. Or invite friends round and impress them. Maybe there is an earning opportunity in having people visit you at home.
How To Get Out Of Debt With Bad Credit
As you will guess, it does not matter what your credit rating is to save or sell your skills and services. We know people who have poor credit histories and looking at ways of borrowing out of their debt. And it does not work – it does not work. If they simply spent a fraction of that time on looking at ways of increasing their income or reducing their expenses, it would be far more effective.
Prayer For Getting Out Of Debt – Affirmations
Sending money to any organisation to pray for you to get out of debt is questionable at best. If an organisation wished to help you get out of debt, they would send you money not the other way around. Many of these companies will ask for seed money and invoke Gods word. The only people who make any money are the people asking for it. Avoid at all costs.
Affirmations on the other hand are absolutely free, and in my opinion, offer you a terrific deal. Affirmations allow you to create your best world hopes and make them true. They open up your mind to possibilities that are tailor made for you, by you.
Your affirmations do not work instantaneously but may take weeks, months, or years to become evident. They are used on a daily basis and believe it or not – they motivate you to do stuff. I never thought I could make global websites until I used affirmations. The subject of using affirmations to get out of debt are too involved for this site to give them the detail they need. One tip is to read why affirmations work and not jump into copying other people’s debt free affirmations. Or should I say increasing income affirmations.
Mind Over Matter
This goes hand in hand with the above. These are unshakable and resolute truths in my life.
The more you imprint something in your mind something the more likely it is to become or remain true.
Getting Out Of Debt – My Story
If you found this website and got to here, I genuinely thank you. It is my sincere hope that you find a solution of some description. This is the way I got out of debt and became more self-fulfilled. I strongly believe everyone can do something to increase their income and remove the burden of over indebtedness.
Many of you have asked the questions – can I get out of debt on low income or can I get out of debt with low credit score. Or maybe can you get out of debt with no money or no job. I suffered all of these thoughts and even now have the negligible burden of one of them. However, the biggest concern for me was, can I get out of debt with low self-esteem or no self-worth.
Self-worth and self-esteem were the greatest challenges I had to overcome. And conquered them I did. Could I go to the nice bars – no. Were the latest fashions available to me – no. What about the latest model car or mobile phone – no. Trendy brands or major labels on basics of food or drinks – no. Holidays to exotic places – no.
I simply cut my cloth to suit my budget, so that I was able to focus on the profoundly important things. The 1st consequences in this were a reduction in my expense and an increase of my time available to build and promote my websites and build my future. I learned new skills and I had many failures. I got up again, brushed myself off and built on what I had learned. I fell and got up many, many times. On the way to building my website, I learned many skills and passed a few exams not necessarily related to website design.
Do I have millions? I certainly do not. However, I am not in debt. I buy with cash and I have moved home. The burden of debt no longer hangs over me like the sword of Damocles
Who Can Help Me Get Out Of Debt?
I think you know the answer. You have all the answers at your fingertips. It is not going to happen unless you do something. And it is better that you do something NOW. How many tomorrows have you already let go into the past?
How to get out fo debt is all about self help. But as you see it is not about being alone. There are people who will help you along the debt free road.
Last Remedy To Get Out Of Debt
We do not really recommend this, as it means a complete change of life somewhere new. You can basically run away. However, this takes a little planning and thought before you launch this solution. Debt collection agencies and lenders are quite good at finding people. For the simple reason people do not really think about it. Big brother and business know a lot about you. The simplest ones being you name and date of birth. Social security numbers, driving licenses, neighbours, workplaces, social media are all likely to give out a new address. Either intentionally or not. Once again, I know as I was (am) in the industry of debt tracing for 40 years.
What can you do? Plan well in advance. 1st thing is to build a little pot of money to survive at least 3-6 months in a new place.
You can use any name that you want, as long as it is not for criminal purposes. Think carefully before changing your name on official documents.
Most people who attempt to avoid lenders dot not actually move anywhere or move a short distance. You need to be thinking at least a different state or county. Another country would be better.
You are going to be starting a new life. So, it is better to have a strong foundation. Look at possible locations. The fact that you are not acting criminally should avoid some restrictions on how you accomplish this. Using your own computer or smart phone is not wise. Invest in one in your new name and do all research and emails with that equipment. Second hand or cheap is fine.
A major part of moving to be debt free is to remain absolutely debt free. Make no applications for credit cards, loans or anything that will need proper verification. Use a debit card or a prepaid credit card when you need to.
How To Get Out Of Debt - You Asked
The first step has to be taken sooner rather than later. You asked the question on how to get out of debt. Now you have numerous ideas. I wish you all the best.
How To Get Out Of Debt Using Affiliate Products
This solution could be for you if you enjoy chatting, spend time on social media or you buy goods online. Initially all it will cost you is your time. A little bit of research then a bit of reaching out each day on Facebook or twitter or Instagram or the hodgepodge of social media out there. You promote only the stuff you like and know about. It can be everyday essentials or luxury goods. Maybe a service or holidays.
What is an affiliate program? At its very basics you advertise a product of your choice and you receive a commission. It could be a one off commission or a repeating commission for lifetime purchases.
Simply look for an affiliate program for something you understand (you should be able to talk or chat about the product) and search Google. Once you find one they will ask a few questions and give you a fairly detailed plan on how to maximize sales.
You may not be accepted for some affiliate programs – they all have their own rules. Simply apply to another company or several. Applications cost you nothing.