But can you become debt free in 1 year? That’s a big question, I guess!

My answer is simple, yes you can pay off your debts and get rid of them in one year. So gear up, and let’s discuss the different ways to get you debt free!

But before I head on with this post, I want to make one thing clear. Paying off debts is not at all easy and it depends on what debt amount you have.

If you have $5000 in debts, then getting it clear in 1 year is possible. But if the amount is somewhere around $7000 and more, then it will be tougher.

Hence the first priority should always be having an income. A flow of cash to fight your debts.

An example might well explain the thing.

Say you have $10,000 in debts, and your monthly income is that of an average $4000. Therefore each month, if you can keep aside $800 to $900, then you can pay off your debt in exactly 1 year, to be precise.

First cut off the roots of your debt problems:

Before you go ahead to drive out your debts, first understand where are they coming from. If you are smart enough to identify that, then half of your problem is solved.

So your primary target is to kill the source code.

This part of the debt payoff game is a bit psychological and behavioral! Hence be wise and pay attention to your habits and daily routine.

Are you a victim of anxiety, who uses vigorous spending means to calm down? You should not overlook these important factors that trigger your debts and spending habits.

As an active financial advisor for Debt Consolidation Care, my suggestions might seem to be difficult but you need to follow them for managing debts:

1 Cut down the credit card use:

One of the biggest form of consumer debts is credit card.

As you are on your escapade to be debt free, you should in the meantime stop using credit cards as much as possible.

I very well know it’s not easy to live without credit cards for whole 1 year. But if you can’t stop the flow of debts, you will never be able to clear them.

2 Go low on transportation costs and utility bills:

These are also called discretionary expenses, as you can manipulate them as per your will.

Your actions will determine these expenses. So you need to lower these costs while you keep on paying your debts one by one.

Remember the more your day to day expenses, the harder will it be for you to be debt free.

Hence lower your electricity bills, transportation costs, grocery costs, and so on. Also avoid too much partying and eating outs! Spoof! Do I even need to mention that??!!

3 Don’t forget to divide your needs and wants:

Most of us don’t understand what we need and what we want. Needs are our necessities whereas wants are our wishes. You definitely need bread and milk to survive, but having Dom Perignon and oyster is a pure luxury.

With luxury comes overspending. And with overspending comes debts. So stay away from these spending vibes at least for 1 year.

How can a budget help in managing debts?

Don’t think you can fight your debts without a proper budget.

A budget or a money plan will keep your finances restricted and believe me that’s what you really need.

As per this budgeting strategy, you need to keep aside an amount for savings each month, from your paycheck. Now with whatever’s left, you do your expenses with it.

But in your case, debt payments is your primary concern. So you will have to calculate how much monthly payment you can afford. Then every month, set aside this amount first. After which you are free to go on with your expenses and other day-to-day costs.

Needless to say, you can decrease your expenses any time you want and use those extra cash for making extra payments on debts.

What are your other options to be debt free?

One very effective way to clear debts is to utilize debt settlement.

With this unique method of dealing with debts, you will be negotiating your debt amounts with your creditors. Till date, there have been many instances where people are able to settle their debts with pennies on dollars.

So, imagine how lucky you would be if you can at least cut your debt amount by 40% if not more!

Hence understand how debt settlement works, and use it to manage your debts without wasting much time.

What If the whole ‘1 year debt free thing’ gets on your nerves?

Patience!

You need to have patience.

‘Time’, as I said at the beginning of this post, is one key factor in managing debts.

But here’s one great post that will help you to know how to tackle debts as per their priority.

So keep calm and pay off debts; that’s all I can say.

All the best wishes for a debt free life!