How to reduce debt and live a happy life

personal finance

How to reduce debt and live a happy life

How to reduce debt and live a happy life. Debt is a reality that has continued to punish the relative peace of mankind, and will outlive man so long human wants and needs are insatiable from different points of views.

I will like to walk you down some credible steps that could effectively reduce your debt profile and improve your living standard, than leave you in perpetual depress and stress trying to manage and pay off your debt.

The definition of debt: It’s very direct and Self Explanatory, debt is a scenario where you borrow or got learned valuables such as money or any other effect, on the pretext that you are supposed to pay back or return same on agreed predetermined time or date.

Experience has shown that debts are not often paid back to the initial owner, in most cases, not because the borrower does not want to pay but could be starred with so many financial challenges, could as well be on tight budget.

Why you get into debts:

1. You attain to unforeseen financial challenges– This is very understandable and precise, everyone could had possibly been a victim of this point in life. You could borrow money to pay school fees, for health issues and even accommodation.

2. For investment purpose:This could be seen as the smartest reason to borrow funds, when you have access to profitable investments and money, go ahead and create wealth. This will speed up your journey to financial freedom, provided you have a viable investment in view.

3. Luxury: As funny as it is, people still borrow money to live large, which will in turn leave them with a bad credit score. Some will go as far as buying flashy cars and easily perishable luxurious items like clothes, shoes, necklaces, phones and electronic gadgets, will want to meet up with the most recent and trendy development. This is badly affecting your credit score, it’s not an easy tax to reduce debt thereafter.

It’s very easy to borrow than pay back, thus he who goes borrowing goes sorrowing. To mention but a few.

Read also: 13+ ways to grow your entrepreneurial business


1. Stop creating debt: The best way to reduce debt is to discontinue its creation, what are those things that made you borrow money in the past, how necessary are they to your economic objectives, are they your basic necessities and if they are, should find a way around your income and if they can’t fit in, they are obviously not meant for you considering your earnings.

Reject approach to borrow, it mostly comes with interest which could linger to put you on tight budget so long you’d not paid. Welcome every approach that will discourage you from borrowing, in the end you’ll be happy you did.

2.  You need a spending plan not a budget: This could sound confusing, are you conversant with the different between a budget and a spending plan, if yes this I think will not be a problem.

A spending plan is a carefully and purposeful itemized schedule you intend to spend on, this plan accommodates your needs and eliminates your wants. Your needs are the basic necessities of life like food, shelter, health etc.

A budget is a generalized intention to spend on arrays of items, not minding their order of priorities. Both wants and needs are contained in your budget, how then can you reduce debt with budget if not a spending plan.

Scenario: Say you want to buy a wrist watch that will probably cost N5K at the same time you are in need of N5k to settle your tenancy. Having drawn your monthly plan, all your spending plans have been accommodated and you may want to borrow N5k to buy the wrist watch outside your plan.

This is a bad way to live, why buy a wrist watch by all means when you can use your cell phone for your time.

3. Sale a fraction of your investment: The essence of investment is to be financially balanced, when you have a debt to reduce or pay off, it’s advisable you consider selling a fraction of your investment say shares, you can sell reasonable units and offset you debt. Debt does not allow you a peace mind, you must strive to regain your peace of mind and Self Worth at all cost.

4. Sale your old properties:Some people are fund of accommodating old properties that could go for a reasonable amount while they struggle to reduce debt, how should that be.

I once met a man who said he does not cherish selling any of his properties he’d used from the days of his youth. These are scraps for heaven sake, get them off for recycling and receive some fortunes that could contribute towards reducing your debt profile, your children have seen these properties and knew you’d worked hard, they will surely uphold good values. Kindly think in this direct and reduce your debt, embrace this debt reduction strategy and free your soul.

5. Seek voluntary retirement:Isn’t that a good debt reduction plan, why still linger in the civil service with more three or two years to go, you will not like to die in service trying to reduce debt. Kindly retire and have access to your pension funds and gratuities. The aim is not to spend all and quickly get out of debt considering you still have a life to live. It’s your available resources that must work to save your soul from stress that abounds with negative debt profile.

Read also: 11 effective business promotion pattern for Nigerian entrepreneurs with little or no budget

Conclusion: I want to believe that this article has been so insightful and beneficial as well, there’s no better way than what you have here. Debt can really be frustrating and has its ugly stigma, do not be caught in between, use the directives as your guide. Kindly share this post, someone somewhere could just be looking for this, thank for staying here.

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