10 Ways to Get Out of Debt

By siliconindia  |  Wednesday, March 21, 2012

Bangalore: A debt of any kind is painful and difficult to handle. Be it loans or mortgages, inability to pay them on time can spell disaster. The best way to handle such situations is to have as low debt as possible. But if you already have debt, then you can adopt the following ways to reduce it, as given by Jeffrey Strain of ‘The Street’ and Sam Baker of GradMoneyMatters.com –

1. Downsize Your House

First things first – the mantra of getting out of any form of debt is to reduce the size of your lavishness. You can begin by making sure that you do not opt for a bigger and costlier house when you know you can’t afford it. Do not put the entire burden of the house payment on loans alone. Loans do not erase your debt but just postpone it. Banks will ask for some sort of security from you before sanctioning the loan. So, if you are already in debt, your loan application will be rejected. So, it’s better that you go for a smaller and cheaper house. It is far better to live in a small house than be roofless.

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