I was researching through my browser and came across an article written by a local bank sharing tips on how their customers could live freely even with their debts. I find it funny to imagine someone having fun when debts with interests are counting, putting a threat to their future.
In a movie I saw recently, someone described Debts as a financial curse that makes people live in worry and stress.
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More to that, debts are a huge threat to having dreams of being financially stable as you are bound to pay up and find it hard to save up or make risky investments for better finance level.
I've seen a lot of experiences where a small loan taken led to a huge one and the pay back time was a war for the person. My dad once had to take a loan and I can still remember how bad it got for him to payback. How it is so easy to take a loan but so hard to pay back is where I think the curse is.
Considering how debts works, I'd agree with the fact that it's best for one to live below their means to avoid getting into debts. Doing this comes with tolerance and putting in more work than actually enjoying the benefits of the work.
I know a friend who would spend his last cent on his cravings causing him to go into debts like a habit and it even got to the point where he had to get a loan to pay another loan. Now that I think about it, it would take a much longer time or even never for him to achieve his financial freedom, that is if it is part of his dreams.
From family experiences to others I've witnessed, there are some things one needs to have in mind to get rid of debts or not get into one and I'll share the ones that have worked for my family.
Save/invest the little you can risk saving/investing: I shared an article some time ago explaining the importance of saving as a student and I also explained saving as explained in a book I read, 10% of whatever earned. Even if one can't afford to save that much that seem little, a cent a day could go a long way in getting rid of a possible debt. Of course, it is wiser to make your savings grows rather than have them saved idling away.
Live below your means/earnings: This is hard for some people but for all who would stay disciplined to this, they rarely go into debts and they find themselves building something better for the future. While this may turn out addictive in the future when they are financially free, it is the best measure for the present where finance stability is still faced with debt possibilities.
Buy in bulk, in quality and when prices are favourable: This isn't an easy feat but if one could manage this well, you're up to get good products at home that would last longer and you get to save up more. Buying in bulk means having to spend a lot at one go but not spending for sometime, my dad uses this a lot and I can see how different the result has been since he adopted this method.
It is best to focus on one's debt and ways to clear them off because those debts would have a huge impact on one's financial life until they are free from it. Consider paying the large debts before the small ones, it is logical and better that way.
Thanks for reading!