5 Tips to help you Get out of Debt

No thanks to the current global economic recession and an amalgam of other reasons such as bad and misplaced investment decisions, lay-off and poor financial management skills, a lot of folks are presently in debt and broke. Some people can afford their basic needs but not their wants. Such people may be poor but not hungry. However, when you cannot meet up with the very basic needs of life you are classified as hungry.

Let us examine the case of Job Woka; who is out of job, in debt and hungry. Job was a super employee in a blue chip company before he resigned and set out to become a successful entrepreneur. Presently his business is bankrupt and needs to get out of debt.

There seem to be no help in sight as the financial institutions are not giving any loans, all of Job’s friends are carrying the same cross of economic hardship as he is and are not in a position to help him. Indeed he is in dire financial straights. So what should Job do?

Steps to help you Get out of Debt

Step 1 to get out of Debt

Do a mental and physical evaluation of his present state and change his mental outlook to life. Most of us in Job’s shoes still lead our lives in the past. We continue to whine and be bitter about our present terrible circumstances, dwelling on the past days of ‘glory’ and going about town as if the world owes us a favour of guaranteed eternal bliss but has let us down.

Foremost, survival is paramount when you are down. Remove all fantasies from your head and start again from scratch. Don’t be bitter, angry, jealous or envious. Don’t become a recluse, go out, meet people, begin to live again but most importantly get out of debt.

Step 2

Change your lifestyle by cutting all costs and expenses as much as possible. Learn some effective time management tips. Change the kids from the Ivy League school to a less expensive school (take time to explain to them why), move to a smaller, less expensive house, walk more and drive less, use public transportation since you can no longer afford the high cost of gas. Do not allow foolish pride to affect you, remember; he that is down needs fear no fall.

Step 3

The third step to recovery is to start rebuilding your finances with what you have. Put your ingenuity to good use. Use your car to render car hire or cab services if possible. Turn your front garage to a viewing centre (you will make money to pay for the cable TV subscription and put food on the table).

Step 4

Build relationships. Nobody and no class of persons are beneath you. Meet with the high and low, attend seminars, go for workshops, socialise with friends and family, join business and trade groups, subscribe to business journals and sign up to local and foreign libraries. As you rebuild your life and finances from scratch your breakthrough idea and concept will possibly come from your interactions on the street.

Moreover, document all the errors of your past that brought you to your knees. Also find out and write down all the mitigatory actions that will keep you away failing again. Recite these actions everyday as your personal mantra. Remember that if you make the same mistakes over again you will get the same results. Repeating old mistakes will imbue your recovery process so do not habituate your past errors.

Step 5

Finally, take practical and sensible steps to recovery. It is foolhardy for example to use your seed capital to pay old debts. Invest your fresh seed capital, then sit down with all your creditors and work out convenient repayment plans that ensure they will get their money back as the business grows.

getting out of Debt

 Remember that you must believe in yourself and your ability to reinvent yourself and be eternally free from debt. So strap on your booths, get a grip on your emotions and get ready to walk the walk. Pretty soon you will soon be wealthy again, out of debt and well fed as you apply these principles.


[quote]Consider these two timeless quotes;[/quote] [quote]Consider these two timeless quotes;[/quote]

Debt is a prolific mother of folly and of crime.

Benjamin Disraeli

I came to realize that my money problems, worries, and shortages largely began and ended with the person in my mirror. I realized also that if I could learn to manage the character I shaved with every morning, I would win with money.

Dave Ramsey

See you at the top.