It is said that you cannot become absolutely financially free unless you get out of the debt trap because debt is the main reason why most people never get on the road to financial independence in their lifetime. That is unless you do everything in your power to free yourself from the debt trap.
But getting out of debt trap is not that easy, and it cannot be accomplished overnight. Not unless you wake up one morning and discover that your banked a lottery winner the night before. But what if like most people, your ticket always always bring back smoke after every lottery draw?
Let's not also forget that ever week your lottery ticket eats away every little bit of your money - money that could be put to good use elsewhere and saved for your financial future!
And one thing is for sure, a lottery ticket can bring joy to one lucky family and bring a heap of misery upon those luck has turned its back on them.
Now let go back to how you can deal with getting out of the debt trap.
According to experts, getting out of the debt trap is viewed by most people, especially those who find themselves falling deep in the debt pool for the first time in their lives, as a daunting task. For that reason, they simply hide themselves in the shadows, afraid to ask someone - it could be a close friend or relative - to show them the way out of the mess they're currently experiencing in their lives.
Is that the right way to go? Not close!
Whether you're covered up to your neck in debt, or just finding yourself covered above knee-level with outstanding credit card balances from six month back, there's always a way from any mess out from a sticky situation.
So what do experts suggest you do in this case? Well, like anything other problem in life, it depends on the level of debts that you currently owe.
First, they suggest you get help - fast, before you begin to sink deeper to a level where it's going to be impossible to struggle your way out.
So in a nutshell, here's how other people managed to fight their way out of the debt trap...
Whereas most qualified financial planners can help you design a financial fitness plan, you could also take the easier route go the DI-Y route on the way to financial fitness.
But be warned, instead of becoming your best pal in the boxing ring, a financial planner can sometimes prove to be expensive and also drag you back into the deeper end of the debt pool due to the type of costs or service fees they charge. So shop around for somebody who is willing to help you solve your problem for less than the normal fee.
Failing that, the D.I.Y route may be your one ticket out of the hell-hole.
But, what program is the best solution based on my current debt situation? The answer to that question depends on how deep or low you're in the debt pool. But getting your financial fitness back on the right track can be easily accomplished by all those who are totally committed to success.
Some projects take just a few minutes and are as easy as a toll-free phone call, others can take an hour or two and require some simple calculations or visit to your local credit bureau. However, others will take more time to accomplish.
If you're heavily in debt, for example, you can set up a strategy that will help you reduce your debts over a period of time, say, twelve months to three years; and the retirement saving strategy you start will last as long as your working career does.
Best of all, if debt is a huge problem that's pulling you back from starting your journey to financial freedom, get rid of it!
Andrew Molobetsi, is a financial adviser and licensed tax practitioner based in South Africa. For more information and to sign up for the Smart Money Tips Newsletter, Go to familywealthfinance.com
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