Clearing the Debts: 5 Ways to Eliminate Your Financial burden

by Darwin on May 16, 2018

It there any wonder that debt is described using words like choking, drowning, trapped and imprisoned? The good news is that there is a way to eliminate your financial burden. Using five steps, which you can remember by using the acronym, STRIP, you can strip away that debt and feel free and alive once more.

  1. Stop the Bleeding

The first step in becoming debt free is to stop the bleeding. The debt wound is caused because you have acquired more credit than your income is able to pay off. In essence, your income is bleeding into things like late payments, overdraft charges and interest payments. Before you completely bleed out, you have got to stop acquiring credit and adding to your debt.

Stopping the bleeding will have to be drastic. It will mean cutting up your credit cards and it will involve refusing to make purchases using any other form of credit. You must use every resource possible to avoid adding more debt.


  1. Tighten Your Budget

You will never get out of debt if you don’t manage your money properly. Managing your budget in a debt crisis means that you will need to tightenyour budget. Tightening your budget means doing a thorough analysis of your expenses and how they are affecting your income. In essence, you are making a closer examination of the wound that is causing the bleeding.

Tightening your budget will mean cutting out or reducing the level of some and maybe all of your expenditures. It might also mean finding ways to increase your income. Your goal is to create a health financial atmosphere in which your income exceeds your expenses.


  1. Create Emergency Reserve

One of the reasons that people get into debt is because they spend right up to the very limit of their income so when a true financial emergency arrives they have to go into debt to pay for it. You must create and emergency reservethat can take care of broken appliances, broken bones, and other critical expenses that show up out of nowhere and reach beyond your budget.

Your emergency reserve should begin at $1000 and you should try to add a small amount to it every month, even if it is only $20. You must not touch this reserve unless you are facing a true, critical crisis.


  1. Eliminate Interest Payments

If you are in debt, then you are battling a critical infection of finance charges. Eliminating interestis the next critical step in healing the debt wound and getting out from under its burden. There are a number of different options for dealing with interest payments, but really only one goal; reducing and eliminating interest payments.

Eliminating interest will mean attacking the debt with the highest interest rates first, and then using the money you save from the eliminated interest to pay the other debts. This may require some creative and you may need to explore your options to get out of your money problems.


  1. Pour Excess into Your Debt

As you reduce interest payments, your income might begin to exceed your expenses. The temptation is to use that excess to splurge on things you have been limiting in your tightened budget. Don’t fall into that trap, instead, pourthe new excess into your debt.

By pouring your excess into your debt, you are able to reduce the level of your debt even more rapidly. The sooner you get out of debt, the sooner you can eliminate the feelings of choking, drowning and being imprisoned.



STRIP away the burden of your debt and feel the freedom that can be yours. Make use of the five steps we have provided above and don’t forget to explore additional options. Once you are debt free and breathing more easily, you’ll be glad that you did.

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