Chance Card – Get Out Of Debt Free

People create significant problems for themselves by overspending. Although we know we should only buy things we can honestly afford, it is also difficult when we see something we want. From the report revealed by financial experts in Singapore an average resident normally spends thousands of dollars in settling down his/her debts in many cases using mortgage payments, car loans, and credit cards. Many of the credit card companies do charge an interest rate of between 15% up to 25 %, which makes many people waste a lot of money in paying the loans.

Deciding if you can afford something requires an honest assessment and is the most important of many tips to help you get out of debt . Some of them are:


The first way you can get rid of debt is to make a budget you can live with. The best budget in the world won’t work if you can’t stay on it because it is to Restrictive. You need to make a budget that will be easy to follow. So you can get rid of debt if you follow the three ways. Live on less money that you make. Control your wants and make a budget you can live with. It all can be accomplished with a little discipline and desire. Then you will get rid of debt in less time than you think. It’s a great feeling when you can live free of debt. You can do it. You just need to get started. Once you get started, it will become easy, and you will be on your way to a debt-free life.

Separate between needs and wants

The second way is to learn the difference between your wants and needs. You can get rid of debt faster if you ask yourself the question, is this a need or a want before you buy something. Keep a dairy for 30 days with everything you buy, don’t leave anything out. List even the smallest things you buy. The cup of coffee and doughnut mid-morning. The ice cream after lunch.

Nobody needs to see the list but you. But the list needs to be accurate so you can see all the things you buy every day. Once you have listed 30 days of the things, you bought. Then you can take a look at what things were wants and what were needs. You can get rid of debt by eliminating the wants. That doesn’t mean you can’t have something you want. But you will have the list and see all the things you bought that you didn’t need. When you cut out the things, you didn’t need. You will be surprised how much money you can save and then start to get rid of some of your debt.

No credit cards

Plain and simple credit cards should not be used for anything you do not need. Moreover, department store credit cards are the worst type. If you cannot guarantee that you will pay off the balance at the end of the month, then you should abide by this next vital tip to stay away from debt.

The store credit cards are enticing for many because they offer a discount for opening the account. What many residents of Singapore do not realise however is that the 20% you may have saved on your first purchase will quickly convert to the interest that compounds monthly if you do not pay your balance in full each billing cycle.

Credit cards, in general, give people a false sense of wealth. Typically people who use credit cards are already overspending. It is essential to paying close attention to your spending, another one of many tips to stay away from debt.

However, if you do decide to use credit cards, shop around for the best interest rates, rewards and other perks. Just remember to assess if those fringe benefits equate to a deal rather than allowing them to become an excuse to overspend.

Settling the biggest debt first

If you have a huge debt and you do not know where to start from you can look at these two guidelines.
You can use a stacking method- Here you will examine all the credit cards debts, start to pay the card that has the highest interest rate. Solve the debts step by step until you pay them fully. You can obtain fast loan from Credit Hub Capital Money Lender if you need some financial assistance to pay off your credit card bills.

Secondly, you can use the snowball method which means you start with the smallest debt regardless of the rate of interest. Once you have paid it fully, continue settling the debts in that other until you pay the highest debt.

Renegotiating the rates of mortgage

If you renegotiate for the mortgage, you will be able to save a lot of money. For instance, if you renegotiate such that your interest rate drops from letting us say 10 % up to 7 %. Remember not everyone can renegotiate for a mortgage, but the lenders can consider your case if you have financial crisis from issues such as illness and or you have lost a job they can consider you.


Always remember that this is the time to save as much money as you can. Do not spend on things that are not needed. If it is not essential, then even if it has 80% discount, don’t buy it. Every little bit of money that you can save can get you out of debt if you can use it correctly.

In summary for you to stay away from debt is to create a plan to eliminate it. By committing yourself to a life without debt, you are taking away the strain and stress of financial troubles that plague a lot of people. Choosing to spend within your means and exercising self-discipline will get you off to a great start.

Because debt is so prevalent in the world today, several companies in Singapore offer free advice, budget plans, and other systems to become and remain debt free. This is good news for folks who need guidance and support to accomplish a debt-free existence. These companies offer many tips to stay away from debt that you may not be aware of.