General Information

Debt is a trap because it holds you in the economy and make you work like a slave until you repay it. Many people buy various type of debt products such as Credit Cards, Car Loans, Personal Loans, Travel Loans, Consumer EMIs, Shopping EMIs and many more… The more they earn, the more they take a debt. Most of the Middle class people live on the single formula, Buy Today & Pay Tomorrow.

Every time people get a pay rise at their job places, they become qualified for a new loan only. Now the pay scale has rise so the will take more debt to by cars, shoppings, Electronics…etc…And one day they when they wake up in the morning, they find themselves into a deep debt up to their eye balls and from that day they can’t stop working. Once you caught into a Debt Trap, you can’t stop working for rest of your life or until you die.

You have to understand the fact that, if you take a debt, you are going nowhere financially. If you want to be Financially free and rich than you must get out of this trap. Otherwise you will never become rich. Getting out of Debt Trap & stay away from this trap is the key to Financial Freedom.

Are you already caught in the Debt Trap while reading this article? Than don’t worry, You are not alone on this world who is caught by this trap. There are several million people around this world who are caught in this trap and right now they are working like a slave at their job places to repay those huge loans and Interests.

If you already caught in this trap than I will teach you how to escape from this trap? Here are steps of getting out of Debt Trap.

Step:1 Stop Borrowing More Money -

The first step of getting out of debt is, stop borrowing more money. Cut down all of your credit cards and decide that I will never borrow money again.

Step:2 Build an Emergency Fund -

Build a sufficient emergency fund. An Emergency fund is 3-6 months of monthly expense.

Step:3 Apply the Debt Snow Ball Method to get out of debt -

According to Dave Ramsey, You should apply Debt snowball method to get out of debt. It means that you should first pay low balance debts first and once you pay your low balance debt, divert that cashflow towards paying other high balance debts. In this way, you will feel better.

Step:4 Do Over time at your Job place -

If you want to get out of debt than you should increase your income by doing an over time at your job place or by doing another part time job. Of course, you will have to compromise with your weekends, movies and long-drives but its worth. Once you get out of debt, you can enjoy all of these luxuries.

Step:5 Start a Side Business -

Starting a Side Business is the best thing. I am not saying that, you should start a side business to earn few more bugs. Because it takes a time to develop Business. But I am saying it because developing a Business is worth in the long run. Business is your Asset which can provide you cash flow forever once it grows sufficiently.

So act now to get out of the Debt Trap.