Proven Tips to Get Out Of Debt [Stefany’s Real Case]


I have been working in the finance sphere for a long time and know a lot of stories about how rich people became poor because of a lack of financial education. I also have a lot of familiars who are in debt for a long time and every month the debt is only growing. But one day, my former classmate Stefany called me in despair.

She wasn’t able to deal with debts. Stefany just didn’t know where to start and what to do. We communicated and I always helped her with advice. Last week she made the last payment and you have no idea how happy she was. Today you will know this story in the first person (Stefany).

Debt is something scary. If you have never applied for a loan, don’t start. I am from a poor family and it was a miracle I graduated and entered college. After that, I found rather good work with an average wage. Just when I got my first big money and spent it, I understood I wanted more.

Payday loans to go to the restaurant or buy a new dress; personal loans to have active rest on holidays; installment loans to buy a new iPhone. Loans, loans, loans… When all my salary was not enough even to cover the interest rate and I should have applied for one more loan just to buy some food, it was the final straw. And I decided to get out of debt!

5 Steps to Getting Rid of Debt

First of all, be patient. You wouldn’t be able to go through all 5 steps for 1 month. Everybody needs a different period of time, but becoming debt-free is not a fast process.

#1 Count All the Loans You Already Have

It is very important to know the whole sum of debt. Even if you need a small sum and apply for a 1500 loan, you should collect this data to evaluate the situation and really understand the magnitude of the problem. Take paper and write:

  • whom you owe money;
  • debt amount;
  • interest rate;
  • minimal monthly payment.

#2 Analyze The Situation

Make a table with all the debts and sort them by interest rate (the highest is in priority). The higher the rate, the more money you will pay. So, try to repay these debts primarily.

Another strategy, note what small loans can be repaid till the next payday and which ones need more time. Psychologically it will be easier for you to realize that things are moving forward.

#3 Debt Consolidation

But the interest rate on some loans is extremely high and due to this debt is growing rapidly. The best variant is to ask friends or family for money with no interest, repay debts at online services and banks, after that month by month return money to your savior.

If you have already borrowed friends or family, call them immediately. Apologize and promise to return the money as soon as possible. The money shouldn’t spoil your relationships.

According to Statistics, the average credit card debt is more than $16000!

Another way is asking online lending services for debt consolidation. It was my case. In simple terms, I got one big loan that covered all previous loans and the interest was lower. So, I make repayments to one service every month.

#4 Identify the Maximum Repaying Sum

Count how much you earn now and how much you need for everyday expenses. You should save on everything. Don’t spend even an extra penny. Don’t you realize what’s happening? If you are looking for “how to get rid of debt” you are at the bottom.

Get a grip on yourself, it’s temporary. Down the road, you’ll be proud of yourself. But now no more sweets, Starbucks coffee, taxi, glamour magazines, new clothes, app subscriptions, etc. Only really necessary things for your life.

#5 Repay Your Debt

Make payments every month and no less than the sum you fixed in the 4th step. The best option is to get an additional part-time or remote job. Not to cover your needs that you refused. But to make bigger payments and repay a debt earlier.

Summing Up

Everything is possible if you know why you do it. If you have a purpose, if you realize you can’t live like this anymore – start acting.  However long it takes you, always remember “Life without debt is fantastic.” RixLoans is here to help you in the event that you are looking for cash to pay off debts that you have incurred.


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