by Adebowale Ajose

Created on: March 13, 2009   Last Updated: March 31, 2009

Debt is a state in which the individual; is owing someone else ( a friend, Bank, company). Debt may be in form of money, goods, or services but for sure the debtor has an obligation to pay his creditor back in full (except the dubious parson who will not pay back no matter what). Debt makes one subservient to his creditor and this should be a reason why every debtor should do everything in his power to get out of debt.

Getting out of debt (debt management) requires strategic planning as well as implementation, because money is a scarce resource and almost everybody if mot all have a fixed amount they expect weekly, monthly or yearly, so it takes real planning to get out of debt. Recently I borrowed some amount to get myself accommodation it was quite Hugh, I could not pay back until I implemented the strategies discussed below and ever since I have always been using the strategy to get out of debt.

1. Stop accumulating new debts.

Debt is easy to acquire a lot of activities gets us into debt. The use of credit card is first on the list of our activity that gets us into debt. I would rather advice that everyone cut off the use of credit card but since you want to get out of debt its better for you to stop the use of credit card because it will only increase your debt. For those who can not stop the use of credit card there is a need to negotiate with the bank for a better offer.

After stopping the use of credit card, the next thing to do is to stop buying very expensive products. The truth is that for every product there are the classy expensive products and also there are inexpensive products which will serve you very well also. Expensive products or brand tend to make you spend more than what you would have spent if the price were to be normal. There may also be a need to stop subscription or regular payment for some activities you engage in. Activities such as going to the gym, club and cinema takes a lot of money from you, there is therefore a need to reduce these activities to curb your debt level. My advice to you is to stop debt accumulation.

2. Accumulate Money

The next thing to do is to begin to save, you can not pay off your debt immediately, you need to accumulate some amount to pay off your debt. This fund is meant to help you just in case there are emergency such as hospital bills, appliances fault etc you may need to handle, it will also help to inculcate a saving habit thus helping you to get use to saving. This fund should not be easily accessible but

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