9 Tips to Become Debt Free And Live A Comfortable Life

minimum payments

An important factor that will determine whether you live a comfortable life or not is the presence of debt in your life. If you have accumulated debts, then you will be constantly fretting every month, trying to meet the monthly repayments and keep yourself afloat somehow. Well, if you do not have any debts in your name, then you can essentially live a comfortable life with no financial worries. And if you are someone who is looking to pay off their debts to live a peaceful life, then the below tips will help you in that direction.

Meet The Minimum Monthly Payments

There will be a minimum payment required for all the debt you take. Make sure that you always pay them on time. If you skip the minimum payments, then you will have to pay a penalty. And if you make it a habit of delaying the minimum payments, the interest rate on the debt might also be increased.  All such extra payments you make will only work to delay the full repayment of the debt. For high-interest rate debts, pay off as much as you can each month. And for debts with a lower interest rate, you can continue making the minimum payment.

Implement A Strict Budget

One factor that plays a huge role in helping you cut down on debt is a strict budget. If you don’t have a set monthly budget, then you might end up overspending. Your credit card may also be used to the max. This level of excess spending will only work to keep you in debt at all times. As such, it is necessary that you cut back on your monthly spending.  Draw up a budget that shows your monthly income on one hand, and set up an expense limit of 80%. So, if you earn 2000 pounds a month, you can set up the expense limit at 1600 pounds. You can then either save the extra 400 pounds or use it up to pay off as much debt as possible. And by sticking to a strict budget, you will succeed in paying off your debt in full very soon.

Earn Extra Cash

Another way is to simply earn more money so that you can pay off your debt quickly. You can take up a second job, maybe part-time, and try to pay off your existing debts from the income of this new job. And thanks to the internet, you can also sign up for freelance jobs and earn some nice extra cash. For example, if you are a 3D artist at any animation company, you can sign up at freelance websites like,, and such. Once you post a profile with your work experience and portfolio, you can then start bidding and taking up projects. As simple as that. You can essentially work in your free time, as per your schedule, and still make enough money to pay off your debts.

Get Interest Rate Lowered

Yep. This can be done. It can be difficult, but not impossible. Just contact your creditors and ask for a reduction in the interest rate. If you have a stellar repayment record and are a regular client of the creditor, they will likely oblige to your request and reduce the interest rate on your debt. Doing so will ensure that you have less debt to repay. Consequently, you can pay all your debts faster.

Sell Off Useless Items

There will likely be items in your home that you haven’t used for many months or years. And if you think that you will not be using them again, why not sell it and pocket some extra cash? Rather than having such items take up the space of your home unnecessarily, you can use the funds from the sale to pay off a part of your debt. And if by luck you were to come across something that is considered an antique or collectible, say a special stamp that your great-grandfather had saved about 150 years ago, then you might end up making lots of cash on the sale that will be able to easily clear all existing debts. So, start searching your home for items you can sell.

Set Up A Trust Deed

If you think that you are in a tight spot financially and may not be able to pay off the debts in the near future, then consider setting up a trust deed. By doing so, you will be able to assimilate all existing debts into one single debt and will only have to pay a fixed monthly installment for a certain period of time. You will not even be required to pay the debts in full. Just make the monthly payment for the set time period, and you can get rid of all your obligations and live a debt and worry-free life. Using service such as Debt Free Life can be a great way to learn what steps you can take to become debt free.

Stop Depending On Your Credit Card

Most people are now, unfortunately, hooked on to paying for their expenses using credit cards. And this is one habit that can constantly keep you indebted to the creditors. When you use credit cards for your shopping, it is inevitable that you might end up spending more than you might have intended. This is why you should learn to stop depending on your credit card. Instead, start paying in cash or use your debit card. This will stop you from piling up debt each and every month.

Pay Off Big Debts From Your Savings

If you have a sufficiently large savings account, consider paying off your existing debt with it. This will essentially boil down to your preferences – would you choose to have a savings account together with the obligation of paying off your debts every month or will you rather prefer that you do not have any debt even if you have a smaller savings account. Ideally, if your job prospects are okay and you do not see any risk to your job in the future, then you should consider paying off your debt altogether. This will free you up in many ways, and you can start building a new life, focusing on saving and investing from your surplus monthly income.

Statute Of Limitations

If the debt you have taken is very old, then you might be able to avoid paying it off by using the Statute of Limitations. As per the Limitation Act 1980, any debt in which the creditor has not been in contact with you for a period of six years or more is generally considered as an out of date debt. As such, if the creditor were to suddenly appear in front of you and demand that you immediately start repaying the debt, then you don’t have to do so. From a moral perspective, you should return the money you have borrowed. But if you are in a very tight financial position and the creditor seems to haunt you for the money, you can use the Statute of Limitations and stop the creditor from asking you for a repayment.

If you follow the above suggestions, you should be able to get rid of your debts in a few years at the most. And once you are no longer obligated to make regular monthly payments for some debt you took many years ago, you will feel free. However, be careful to never take any more debt unnecessarily – for example, to buy a luxury car or something. And by limiting your expenses and saving money, you will be able to build a new life that is free from the unnecessary tension that comes from being in debt.

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