To begin with, “Debt” is a dreaded four-letter word. Let us understand and take note that sometimes it may take several years for a person to get out of debt, so our focus should be on gradually coming out of debt and living a completely debt-free life.

Now-a-days, we are seeing a visible increase in the sheer number of middle class families that are increasingly resorting to borrowing money in order to meet their family’s varied needs and requirements. This is because of the increase in the standard of living, burgeoning lifestyle aspirations and also the ever-increasing costs of necessities, comforts and luxuries on account of inflation.

The younger generation or the “millenials” as they are commonly referred to have been particularly observed to have excess cash flows and / or disposable surplus, especially in the initial years of their working lives. Further, the comparative lack of responsibilities at such an early age makes it easier for them to have more money than they actually need, resulting in such reasonable surplus in their hands. Thus, they live a luxurious lifestyle by spending these ‘extra bucks’ instead of spending prudently and wisely or striking a fine balance between savings / investments and expenditures.

As a result of the above, such individuals often find themselves in troublesome situations when subsequently their family responsibilities increase and because they feel entitled to a standard of living which in reality they simply cannot afford. In such a situation, cover loans and credit cards are termed as saviors, which if persisted with unchecked, can result in these persons falling into deep debts.

Debt, if utilized systematically, can actually help create good income generating assets to boost your income and improve your overall productivity. On the flip side , if you do not exercise adequate checks and balances on your debt, you can seriously end up impeding your financial progress.

This blog seeks to inform, educate and help the common reader understand the most proven or tried and tested ways to be debt free for the rest of your life. Always strive to achieve a debt-free life by following a few basic set of fundamental ground rules:-

• Put all your debts on a piece of paper –Make a list of all your debts, including the creditors, total amount of the debt, monthly payments and due dates. You can use your credit report to confirm the debts on your list. Having all the debts in front of you will allow you to see the bigger picture and stay aware of your complete debt picture. Don't just create your list and forget about it. Refer to your debt list periodically, especially as you pay your bills. Update your list every few months as the amount of your debt changes.
• Downsize to a smaller, less-expensive house or apartment - Living in a big house with a big loan is a risky proposition. Plus, as it becomes difficult to finance the loan, we gradually ddon’t love the big house so much any longer. It is then we can look at the prospect of downsizing to a relatively smaller house which actually fits our budget. A smaller house means definitely smaller payments.
• Create a debt pay-off plan -After making a list of all your debts, you should rank your debts in the order that you want to pay them off. Some experts recommend going from the smallest amount to the largest since this helps get the momentum going. You need to decide how much extra money you have every month to pay towards your debt.
• Cut down on expenses - To minimize the damage caused on a monthly basis, many people explore ways to cut down on expenses that are both easy to implement and effective. Once we know how much money we have and how much money we are spending, we get a fair idea that we have to cut down on our expenses so that we could free up cash to deploy towards reducing our debt burden. We cut down on every expense that is unnecessary, big and small.
• Increase income or inflows -Take a look around your house. Is there anything taking up space that you really don’t need? Maybe, there are some larger items taking up space such as unnecessary furniture that could be sold to pay off a portion of your debts and thus decrease your financial burden to some extent. To cite an example, you could host a garage sale. If you really like your current job or you’ve found you’ve optimized your earning capacity in your particular field, why not get a second job? It doesn’t have to be forever — just for a short period of time until you’re able to pay off your debts in full.
• Educate yourself - Read personal finance books, listen to personal finance podcasts and read informative blogs on personal finance. You can learn a lot about yourself and money from these online communities. Make this a habit and be disciplined in this regard.
• Transfer your balances -If you’re paying high interest rates on your loans, transferring your balances can be a great way to save while you pay down the debt. However, be sure to always pay off your minimum payments, and be sure you can pay off your balance before the introductory interest rate offers expire — otherwise, you could end up paying hefty interest charges and fees.
• Take care of yourself and your responsibilities -Take a look at your expenses from the previous month. Is there anything you really don’t need? Did you go out to eat too much? Do you need to rein in entertainment or other such discretionary spending? Pay special attention to monthly regular monthly subscription services that can add up big over time. Then, apply these savings to your debt.

Whether it is student loans, credit cards, car payments or any other type of debt, it’s costing you money! And if thinking about debt keeps you up at night, it’s likely causing you a lot of stress as well. But here’s the crux of the matter - once you make paying off your debt a priority, it can be often easier than you think.

The key is persistence — and with the right plan of action, you’ll start to see results in no time. When you get to the end of your personal finance journey, do celebrate with those around you who supported you along the way.

To put it in a nutshell, it is imperative that you get an absolute firm grip on your finances, set definite life goals, spend prudently and try to live within your means. By following these few simple golden rules, you are well and truly on your way towards leading a debt-free life.

It’s time to say GOODBYE to DEBT!

Founded in 2005 by new–age entrepreneur Abhishek Bansal, the Abans Group has evolved into a globally diversified conglomerate, providing expertise in Broking Services, Non-Banking Financial Dealings, Financial Services, Agri-Commodity Services, Warehousing, Realty & Infrastructure, Gold Dore Refinery & Manufacturing, Trading in Metal Products, Pharmaceuticals, Software Development & Wealth Management. The Group is a comprehensive financial and non-financial services and solutions provider, aiming to provide end-to-end solutions to its clients.