Some people have accumulated debts and are now looking for how to become debt-free. Indeed, being a debtor is not one of the best things anybody can wish for.
For one, you will be ashamed and feel less of yourself when your creditor comes around. It can be embarrassing when you are forced to pay the debt even when you don’t have the resources to do so.
That is why some debtors came up with the one-year milestone of paying off debts. Indeed, it can be one of the definite steps to becoming debt-free.
In this article, we will walk you through the steps to become debt free and in less than one year too.
What Is It Like To Be Debt Free?
Becoming debt-free in less than one year is important to debtors and for many reasons too. It is like a prisoner that has been behind bars for years. After gaining freedom, the prisoner steps out of the caged walls and heaves a sigh of relief for the new chance at life.
That is exactly what it is like to be debt-free. You will become a free man once again. You wouldn’t be bothered about overworking yourself just to have extra money to pay off your debts. Most important, you will be financially disciplined to avoid getting into debt again.
How Long Does It Take To Become Debt Free?
There is no definite time to become debt-free. For example, some debtors are looking at how to become debt-free in 5 years. In this article, we are looking at how you can become debt-free in one year. In some other scenarios, debtors will be making plans to pay off debts within ten years or more.
Therefore, the issue of how long does it take to become debt-free has to do with many things. The first is the dedication of the debtor to pay off the debt. The second is the charting of a roadmap to pay off the debt. The last but not the least is to be consistent with the payments.
How Can I Become Debt Free in One Year?
This is where it concerns you. You are one of the fast action-takers that want to be debt-free in one year. Congratulations, because we have made a list and explanation of the things you need to do to drop your status as a debtor in one year or less.
1. Sell Your Items for Cash
You may be a debtor but that doesn’t mean you are bankrupt as far as properties are concerned. In your state of indebtedness, you tend to start considering some of the items and properties that you will either not be using again or you wouldn’t be needing them for some time.
It can also be one of the fastest strategies on how to get out of debt quickly. That is because you don’t have to work for longer hours or save up more money to the detriment of your needs. All you need do is to gather your old and unused items and sell them off!
The rule of thumb is to identify those items and start selling them off. Of course, you wouldn’t expect to sell them for the same price as you got them. Therefore, you may want to place half the original price tag to attract more buyers and sell off the items faster.
2. Avoid Expensive Hobbies
You may have to do without some hobbies that have been dipping some holes into your finances. For instance, if you have been paying $100 a week to play golf, it is time you saved that amount and put it into your repayment plans.
By the time you avoid expensive hobbies for a week or two, you will be able to save up a few hundred dollars that will go into repaying what you owe.
3. Increase the Intensity of Your Hustle
There is no doubt that you have been working hard to make more money but it is time you start increasing the intensity. You can’t afford to ignore some side hustles that you can always do to make more money when you have some hours to spare.
The general idea is to look for ways to increase your income. By doing so, you will have some more money that you can put into the amount you are setting aside for your repayment.
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4. Negotiate for Reduced Interest Rates
Sometimes, your inability to pay off what you owe isn’t because you didn’t have the money to do so. Instead, the interest rates happen to be a sort of overhead cost that can make you have little or nothing to pay off the debt when the time comes.
If you are in such a situation, it is important that you call your creditors and negotiate for a reduction in the interest rates. Because they want to recover their money and fast too, your creditors may give in to good reason and offer to give you some reductions in the interest rates you have been paying.
5. Ask for A Raise
So, you’ve been working for some years and your employer hasn’t added some dollars to your pay. Now that you have a huge debt hanging around your neck, you can use that opportunity to ask for a raise.
Be careful how you do it and how you present it because some employers can be hard to please. You may end up losing the job you have while you were asking for more pay. So, be wise on how you go about it.
6. Master the Art of Saying No
You have been the cheerful giver all these while and until you slipped into debts, you never realized how bad your giving attitude has gone.
Of course, your beneficiaries will still come around sometimes and ask for your help. It is pertinent that you master the art of saying NO! to demands you cannot afford and stick to it.
That way, you can save some money from what you may have wanted to give out and use the same to settle your debts.
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7. Draw Up A Budget
Well, if you haven’t made a budget in your indebted status, now is the time to do so. If not, you may be on your way to acquiring more debts.
By making a budget, you will be able to downsize on your expenses and start living within your means. At the same time, you will be budgeting or setting aside some money to be used to pay off your debts.
You Can Become Debt Free in Less Than One Year
Becoming debt free is no small feat. But when you have the right strategies, it can be one of the easiest things you can do.
What have you been doing to become debt free?