How to get out of debt? 6 ways to successfully write off debt

How to get out of debt is a question that many people wonder. In life, many times difficult we cannot avoid having to borrow money and falling into debt. On the other hand, if you do not know how to manage your expenses and spend extra money, it will make debt even more debt.

Being in debt not only puts economic pressure, but also makes you mentally tired and stressed. Ending high debt is not easy. If you are under stress because of your debts, then take a look at 6 ways to get out of this debt right away.

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The reason you never get out of debt

In order to have a quick and reasonable repayment method, first of all, it is very important to find out the causes of debt. Typically, people often become indebted due to the following main reasons:

  • There is no clear spending plan: This leaves you in control of your money, not knowing how much money you make and where you spend them, thereby not having the necessary savings and leading to debt. nag.
  • Overspending, out of control: Common manifestations of overspending are buying too much expensive, buying unnecessary junk, buying trendy items or chasing after others. Spending you spend too much on your means often puts you short of money at the end of the month and falls into debt.
  • Don’t know how to use money to make money: Lack of financial knowledge, not understanding the movement of money makes you unable to increase the amount of money you earn. This also makes it easy to become destitute and indebted, when something unfortunate happens.
  • Use credit card accounts: Using multiple credit accounts and getting prepaid makes it easy to fall into financial trap and go into debt.
  • Do not save money or save very little: This means that you do not have backup funds in case of surprise and easily fall into debt. In addition, not being able to save money also shows that you have poor spending management.
  • Participate in unhealthy pleasures, or gambling.
  • Lack of stable jobs or unemployment.
  • Encountered unexpected events.

How to get out of debt in the 6 smart way

Many people are not aware of the exact reason why they are always in need and often have to borrow money to solve their financial problems despite the fact that their essential living needs are not too high. That is why they cannot find a way to repay the debt completely.


To be able to pay off debt quickly, you have a reasonable debt repayment plan and manage your spending closely according to the following methods:

Prioritize debt repayment first

When falling into debt. You need to put the accumulation for repaying debt first and forgo other unnecessary expenses. You need to set goals: what debt to pay first? how long to pay and try to make money and save to pay off that debt.

Setting a goal and trying to accomplish it is very important in paying off debt. It creates pressure and motivation for yourself, helping you to try and be more determined. Be determined and try to make sure your debts will be paid off quickly.

Have a reasonable spending plan

Lots of problems in life often go badly and we wonder why isn’t things different? And when life doesn’t work out, you often blame this and that, not yourself.

You blame debt for not making enough money. You tell yourself that a raise will make everything better. But making more money isn’t the key to dealing with debt, because you don’t have a spending plan and often spend more than you have.


Having a reasonable plan or spending will not only help you have a balance to pay off your debt, but you can also have the savings to invest or use when needed. You need to make a spending plan for the total money you make. In addition to essential expenses such as: meals, travel, rent, payment of utility bills … you need to minimize expenses for your needs such as shopping, entertainment … to save money repay the debt to the maximum.

Maintaining a strict spending division and management habit, and setting aside a little money to save or invest each month will help you never fall into poverty, otherwise you can make a lot of money. than.

On the other hand, if you do not need, you should not open a credit account and use a lot of credit cards because they can easily lead you into debt if you do not know how to spend properly.

Make a list of current debts and pay off your debts in the correct order

You need a paper and a pen, then list all your current debts; Debit list will include the following contents: name of the debt, principal amount, payable interest rate and payment term….

The listing helps you to detail information about debts so that you know which amounts to pay in advance and which can be paid later. After listing, you should also pay attention, should prioritize paying high-interest debts (because high interest leads to the amount you have to pay.

The listing helps you to detail information about debts so that you know which amounts to pay in advance and which can be paid later. After listing, you should also pay attention, should prioritize paying debts with high interest rates (because high interest leads to higher amounts you have to pay) and coming to the previous maturity in the correct order as So your debt is paid off the fastest and least expensive.

In addition, listing can help you feel motivated and clear goals to start paying off your debt and identify the risk factors of failing to make payments in time. With that, you will soon get out of debt without a way out.

See also: What is debt? What is bad debt?

Find ways to reduce interest rates

If your debts come with interest, make a list of all your debts, including credit cards, unsecured loans, home loans, car loans … Compare interest rates on loans, You will find unsecured loans often have higher interest rates than collateralized loans. You will need to convert unsecured loans into mortgages to enjoy lower interest rates.

Find another source of income

When you are in debt, finding a way to make a lot of money to repay the debt is a must. However, not so that you ignore illegal things or gambling to make money quickly.

In this case, you should find ways to increase your income by looking for more overtime jobs, or investing in stocks, trading online or contributing capital to do business, … so that money can make more money. , help you write off debt in a short time.

However, before deciding to choose a job or business investment you should carefully consider and choose a career that suits you and your current economic conditions.

Be patient to pay off your debt gradually

With so many debts, you cannot settle them overnight. What you need to do is to be patient and pay your bills slowly and stick to your repayment plan. In addition, you should also regularly keep track of your debit list to see how much you have paid and how much debt you have left to pay.

Regular monitoring will make you feel your debts are shrinking, and the pressure to repay will gradually decrease and you will have more motivation to repay the remaining debt quickly.

Too much debt without a solution is a common problem for many people. However, if you know how to handle it wisely, you will definitely get out of debt easily. Knowing the reasons and the following quick debt relief solutions will help you say goodbye to debt worries in the nearest future. If you are unfortunately in a difficult situation, what are you waiting for, do not try to apply the smart debt settlement methods above to solve your problem. I wish you success with debt relief.

See also: Pandemic to Push Philippine Debt Ratio to More Than 50% of GDP

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