Debt can be a useful tool to attain financial success but how you use it matters.Wealthy people use debt as a tool to leverage their investments and grow their cash flow, but poor people use debt to buy things that make rich people richer. Only borrow to acquire an asset that will appreciate in value. People with bad debt habits will typically go into debt buying things their income cannot support. They will borrow money to purchase big-ticket items that don't appreciate in value and most likely can't cover the cost of the debt over time.
1 Acknowledge the total amount of your debt by making a list.
2. Set a repayment schedule that include how much you owe each person or institution.
3. Prioritise your debts.Decide which ones are most important. This depends on your particular situation, you could slay the largest debt first to give you more confident that the rest are manageable, or you could decide it is best to start with the debt charged with the highest interest rate, so the debt does not increase. Otherwise, it's best to pay the one with the most imminent
4. Set deadlines for each loan. There should be an estimate of how long it is going to take you to pay off each debt.
5. Decide how you plan to raise the money to pay.For example, deciding to cut your outflow to create room in your budget every month towards paying down your debt, finding another source of income or selling off valuable items you don't necessarily need are all options to consider.
6. Think about the triggers that led you into debt in the first place and try to eliminate them. There is no point getting out of debt only to dive back in.
Learn to slay your debt rather than wallowing in it. Please share your thoughts to help me too.like and subscribe for more.
Yes, the major difference between the rich and the poor is that the former believes in investment, while the latter spend money on things that drain their wallets.