Debt is a real enemy of our financial lives. It starts with a little debt over here and a little debt over there and before we realize we have debt everywhere.  Many a times people are forced into debt due to certain unavoidable circumstances like a father needs to pay the yearly fees of his son today where he can’t afford the cash immediately or a loan is taken for an emergency operation which really can’t be avoided but many a times we don’t think about debt seriously enough and go out for expenses which are totally avoidable. An example of this is a person decides to take his family for a vacation to some expensive destination without having the required funds at the moment.  I don’t say at all that its wrong but if you can’t afford it plan out first a strategy by which you save enough for the vacation and the enjoyment which you get then will be totally different. When we borrow always remember we lose control. Its an old proverb that “The borrower is the servant to the lender”

Now if at all we land ourselves in debt then we have to really work out to get out of it. Below are some helping points mentioned to help you get out of debt.

 1.      Have a proper mindset: Its really critical that we have a proper mindset towards debt. We need to think positively of ideas to get out of debt. The mind is an amazing gift of God to man. Once it knows that you are into some problems, it immediately starts to find ways and means to resolve them. The only important thing over here is that we need to think often as to how to get out of debt. We need to inform our mind that we want to be, and we have to be debt free.

2.      Gain better understanding: if you have used a GPS system you must be well aware that whenever you put a destination into a GPS system, it first takes into account your current location and only after that its able to guide you to the best path to your destination. The same holds true when you are planning to get out of debt. You have to first analyze where are you standing now financially and only then you will be able to start your journey towards a debt free destination.

3.      Get help: Every one of us needs help in this life. Nobody can just go on and on without any help and support from others. When you start to think of your strategies to get out of debt, always make a list of people who can help you. This can be a financial advisor who can help you with a piece of advice or it can be even a friend or family member who can lend you some interest free money for a specific period to close the loans or credit card dues with interest.

4.      Get Control: Make a list of your needs monthly. Take control of your expenses, see where it is that spending is a must and make a list of expenses which can be avoided or at least can be deferred. This will put you in better control without having to worry too much during the month. Make a decision that you will get out of debt for whatever it takes. Stop immediately to take on further loans. Make a list of those loans where you are paying high interest rates and move them to the top of the list for repayment.

5.      Make a plan: After gathering all the ingredients you need to make the recipe. With all the information and ideas gathered, now you need to sit and make a plan of execution. You need to set your priorities and you need to monitor your plan very closely. Without a plan you will fail. Its your map to get out of debt. Your plan should have your net worth as a starting point and you should have a net worth of yourself as a destination. Then you chalk out your path to reach that destination. I repeat its very important to review your plan and progress at least on a weekly basis. This is the most important part of your plan, without this you will be off track very soon and will never reach your destination. Following the plan will help you to convert your negative net worth into a positive one and once this starts happening, it will increase your confidence and you will be debt free rapidly. Before I end this article a tip for you “All planning should be done on paper” planning only in mind cease to perish without execution.