Do you know how to get out of debt? If you don't know and want to know, I invite you to see the following post. This will be dedicated to answering that question, all in order to make you completely free. So let's not waste time we are about to start. Come on!

In case you don't know, we have started a small series talking about debt. Here are the posts that we have already studied, in case you have not read it, you can update:

Do you know what a debt is? Surely you have one - This is the first post you should look at

How to know if I have outstanding debts - See it if you are not sure of all the debts you have

Pay off debts Tips to help you be free! - The best part, I would say that the first part of our freedom in relation to debts

But if we are honest, not everything ends when we pay a debt. That is, paying the debt is not synonymous with getting out of them. Well, being completely free needs an effort and organization on your part to avoid going into debt again.

So if you are only interested in getting out of debt, that is, pay the debt, see our last post. We share some options there! But if what you want is to say goodbye! forever I recommend you continue reading this article.

How to get out of debt?

Here are some tips that will be very useful if you want to be debt free forever. As a successful entrepreneur, you have to break that bad habit of owing more every day, so pay close attention.

1- Registration is necessary

As I said before, we need to be organized. This requires that we record several things, including our expenses and our income. Remember that we are assuming that you no longer have debts because we learned in the previous post how to pay. So there should be no debts in these records, but only expenses such as basic services or other normal debt (but not overdue).

If you use much better software. Since this way it is easier to see what we have, or what we need. In addition, as time progresses, we will be able to see our evolution, that is, if we have improved, worsened ... and how big is the difference between our income and expenses.

2- Relation expenses - income

Once the registration is done, we need to see if the expenses are less than the income. It should be like that! If not, we need to do two things:

Let's reduce expenses.

If you reduce expenses enough, it may not be necessary to increase emergency income. Or vice versa, if we increase income in a good way, it may not be necessary to lower expenses in an emergency. However, the best option will always be to do both. That is, optimize expenses as much as possible and always seek to increase prices. But for now the important thing is to make expenses less than income.

If we achieve this, we can say that we have partially got out of debt. Well, to cover all our expenses we will not have to opt for credit, trust ... or whatever you call it. This would be a breakthrough.

3- Get to a point of having reservations

Regardless of how you have managed to have more income than expenses, it is necessary to greatly increase our income. This, in order to be able to afford to save and have a kind of reserve in case the balance of expenses - income is affected.

Remember that this is very easy to happen, since the prices of certain things can rise, emergency expenses arise, etc. Or on the other hand, it may be that if your income comes from a particular business, if it drops sales, the imbalance is immediate. So a good answer to how to get out of debt is to have a reserve for these emergencies.

So take advantage of those good seasons to save. Do not think that because you have a lot of money you just have to set aside expenses and do what you want to do the rest. A truly successful man and woman have to be cautious and always be prepared.

If you ask yourself But how do I increase my income? I think it is easier for you to look in this position for a way (to sell something, small business ...) than to be looking for money to pay a debt. So spend time on this advice and look for extra income to have reserves.