7 Debt Free Advice: 7 ways to abolish debt in 1 year, know

In today's fast pace, almost every person is suppressed by the burden of some kind of debt.Home loans to buy a house, personal loan for sudden expenses or credit cards to meet everyday needs-all of them together slowly stress the person.The burden of debt is not limited to money only, but it also affects mental peace and relationships.If the steps are not taken in time, then the interest increases so much that the entire income only goes into EMI.But the good thing is that with some smart planning and discipline, you can be largely free from your debt in just 1 year.Let's know 7 important methods, from which you can become Debt free quickly.

Control expenses immediately

The first step to get out of debt is to curb your expenses.Many times we do not pay attention to small extravagance and it spoils our budget.First of all make a month's budget and write how much you will spend on what.Try to only put money only on essential things like rent, electricity, medicine and food.Immediately reduce habits like walking outside, eating in restaurants or online shopping.Remember, the more savings you save, the more money you will be able to use to repay the loan.

Find the means of additional income

It is necessary to reduce expenses, but at the same time you will also have to increase your income.It is not difficult to earn side income in today's time.If you have writing, designing, teaching or mastery in a particular skill, then start freelancing.Apart from this, part-time job, online tuition, blogging or youtube channels can also be a good option for additional earnings.The higher the income, the faster you will be able to eliminate the debt.Also, this extra earning will make you financially strong in future.Must read this: SIP Investment Plan: SIP of ₹ 2500 every month, get ₹ 1 crore fund

Pay the most expensive debt first

The terms and interest rates of each debt are different.Credit card interest is sometimes up to 36%, while more than 15% interest has to be paid on personal loans.In such a situation, the most intelligent step is to end the most interested debt first.This is called Debt avalanche method.As soon as you get rid of the most expensive debt, the burden of your EMI will be lighter and you will have more money to repay the remaining debt.

Use Debt Consolidation

If you have many small loans taken from different places, then it can be difficult to handle them.In such a situation, Debt Consolidation is useful.This means that you take a new big loan, whose interest rate is low and pays all the debt from it.Now you have only one EMI left and the burden of interest also decreases.This method is especially helpful when you have become upset while handling many debt.

Set EMI auto debit

Many times people forget to fill EMI on time, which makes Penalty look and the credit score also deteriorates.The easiest way to avoid this mistake is to set Auto Debit from your bank account.This will automatically cut your EMI on time every month.The advantage of this will be that not only your debt will decrease on time, but your credit history will also become strong, which will provide better loans in future.Also read: Post Office Best Scheme: Rs 17,84,148 will be available in 5 years on 25 thousand deposits