Having debt sucks! But feeling stuck or trapped in debt can feel torturous. If you are finally ready to rid yourself of debt then you will be happy to know that there are two proven ways to become debt free?
2 Ways to Become Debt Free
If you were to do an internet search on reducing debt you will undoubtedly find thousands (maybe millions) of websites suggesting that to become debt free you just need to make more money. The reality is that there are only two ways to truly become debt free. You have to either pay off your debt or have it forgiven.
Pay Off Your Debts
The best way to become debt free is to simply pay the debt off. This common sense technique to reducing your debt should sound like a no brainer…because it is. The problem that many people face however is being able to pay off their debts efficiently.
When trying to reduce your debt there are many strategies you can use. Many advisors suggest finding which bills have the highest interest rate and paying those off first. Another method is to start with the smallest amount and work your way up. No matter which option you choose; the key is to prioritize your bills by level of importance and then aggressively pay each one down.
Debt Forgiveness
Another way to become debt free is if a company decides to forgive your balance. Believe it or not, companies do have the power to forgive your debts. However, this option is only reserved for specific occasions. For instance, depending on your occupation or disability status you may be eligible to get your student loan(s) forgiven. Another example in which companies may forgive a portion of your debt is through bankruptcy. Unfortunately, when a company forgives your debt it usually causes damage your credit score.
The Choice is Yours
Simply making more money will not erase or solve your debt issues. The only way to truly become debt free is to either pay your debts off or have them forgiven. The easiest option of course is to simply pay your debts off. Not only can it help boost your credit score but (if the debts are valid) it’s the honest thing to do.
