Hey everybody! I’m excited to bring you a guest post today. It is on a topic that I don’t generally write about, because we focus on helping people who need to invest funds. Marie Nelson provides some tips for a blue print to get out of debt, plan for financial freedom and then hopefully you will be able to use our services in the future. :O) Welcome, Marie, take it away!

If you want to get rid of your debts then you need to have a plan of action to prevent incurring more debts and to get yourself out from its trap. You will need to prepare a budget in order to free yourself from the debts’ shackles. These are the following tips to plan a budget that would pave the path for a debt free life. Enrolling with a debt settlement program may also be helpful.

Achieve a debt free life by planning a budget:

1) Prepare a budget:
Do extensive research on the sources and amounts of your expenses in order to prepare a budget. Obviously your monthly expenses can not exceed your income. If you are spending more than you make, you will need to either cut some expenses, increase income or a combination of both. When you plan a budget make sure that you follow it vigorously otherwise you will stay stuck in the vicious cycle of debt.

2) Calculate the amount of debt you owe:
First, add up all of your credit card bills, mortgage loan(s), car loan(s) etc altogether. This will give a clear picture of the amount you actually owe. You can pay off the debts more easily if you have a proper calculation of the owed amount.

3) Make an emergency fund:
An Emergency fund is crucial if you plan to pay off your debt without taking further loans in time of crisis. Earn some extra cash so that you can avoid financial hardship. By renting your garage or a room of your apartment you can earn some extra dollars in order to increase the emergency fund. If you can cook well then make full use of your talent. You can bake cakes and prepare pudding and sell them in local shops, to your colleagues or friends.

4) Pay off your debts with high interest rate:
Give priority to the high interest rate debts while paying off the owed amount. If you delay paying the high interest rate debts then the interest amount would pile up making the payment plan unaffordable for your pocket.

5) Avoid using credit cards:
You need to avoid using the credit card as it is one of the major causes for people’s debt crisis. If you have incurred debt then using your credit card would further increase that debt. Credit cards can tempt you to indulge into extravagance as you do not see virtual money slipping out from your wallet. Reckless spending will increase the debt burden that would be difficult to over come.

6) Avoid taking loans to pay off your debts:
If you plan to borrow in order to pay off the debts then…Well DON’T! Most people who try this end up with more debt. If you have any plans to come out from this torment then think twice before borrowing. Instead of taking a loan, cut expenses such as Cable TV or consider finding a part-time job until the debt is gone.

Author Bio:
This is a guest post by Marie Nelson who is a financial writer. He has helped lots of people with free counseling and advice on many finance related topics and enjoys helping people solve their debt problems.

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