How to Get Out of Debts: A complete Guide

You must have a strict control over your expenses if you really want to get out of the debt that you have acquired over these years. Getting out of the debt will never be an easy task if you have already crossed the border line that lies in between your income and expenditure. People with unlimited credit facility and multiple credit cards are found to be in the trap of debts than the persons who use a single credit card or cash for their purchases.

If you are in debt use of credit cards again may lead you to more trouble. Avoid use of credit card till the finance gets in a better position. If you have no other options use only a single credit card for your future purchases. It will help you to keep an eye on your expenses. It is also better to avoid the use of convenient cards such as gas card, provision cards or petrol cards issued by various corporations till you get out of your debts. Use of single card for making purchases will help you not to add more to the debts that you owe to the banks and other financial institutions.

If you want to control your expenditure learn the habit of writing down your day to day expenses. At the beginning you may feel it annoying and waste a waste exercise. But when you go through the records at the month end you will definitely learn how to control your expenses by avoiding unnecessary purchases and spending. Try to keep a record of every penny that you spent to get the correct picture of your spending.

An attempt to categorize your spending also may help you a lot in controlling your expenses and to get out of your debts by diverting the fund that you use to purchase the things that are not essential for the time being. Try to make a list of the things that you like to have by categorizing them into different groups such as 'essential' and 'not essential'. Include the things such as food, medicine etc in the first category and add the thing that you can postpone for a while in the second list. Forget the luxury items with which you can survive until you get out of your debts or you reach in a safe zone and divert the finds that you are thinking of purchasing these goods to your debt relief fund to get a peaceful sleep at night.

When you prepare a monthly budget try to avoid the unnecessary expenses that you have made in the last month. It will help you to solve the problem in a timely manner. Adding more to the debt you owe to the bankers will make problems more complicated and a difficult one to solve.

Start paying off your debts immediately by using the fund that you have raised from thinning down your day to day expenses. And try to develop a habit of cash purchase to keep your expenses under control in future.