If you have the habit of buying anything you set your eyes upon on credit, and later find it difficult to pay off your debts, you must seriously consider some ways to live a debt free life.

How to live a debt free life

To lead a life, which is completely debt free, you should follow the things mentioned below:

Stop using credit cards: You should completely stop using credit cards and incurring more debts. You should make the habit of purchasing things on cash only. If you want to avoid carrying cash, you can use your debit cards.

Start to live frugally: You should start living frugally. You can buy things in bulk, to save money. You should also use discount coupons to buy your weekly groceries and other items.

Add up your debts: You should make a list of unpaid bills and find out the total amount of money you owe to your creditors.

Prepare a budget: Based on your monthly income and expenses, you should prepare a budget and see how much money you can save each month.


Contact your creditors: Once you know how much you can afford to pay each month, you should contact your creditors and negotiate with them to reduce your interest rate and waive off penalties towards late payment.

Start paying your creditors: Once you have come to a settlement with your creditors, you should start making monthly payments on time. You should also try to pay an extra amount, in addition to the minimum payment, to pay off debts faster.

Make an emergency fund: In addition to your monthly payments, you should keep aside a sum of money, to use it in times of emergency.



You need patience, hard work, perseverance, effective debt management skills and the habit to have a check on your spending habits, so that you can enjoy a debt free happy life.

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