Destroy Your Debt: 10 Expert Ways To Become Debt-Free

Have you heard of the term called Financial Phobia? which can be even termed as Money Anxiety. Financial Phobia in simple terms nothing but fear of failing in the management of personal financing.

This personal financing may include Budgeting, Investing, Future Planning, Bill clearance, Debt management, and many. If you fail to learn and avoid your money anxiety you could eventually end up facing Chrometophobia (Intense fear of money).

Have you got a question about why this article is inclining more towards anxiety than the tips to destroy debt? Here you got your answer.

Do you know what could be the most dangerous situation where your mind starts worrying more than working? It is when you are under Financial Stress.

So before getting into the details of this article on tips to destroy debt, Let us grab some space in order to add some tips to prepare you to tackle Financial Phobia and Financial Stress. Without overcoming them you cannot plan your plan of action to destroy your debt.

We just tried briefing the article in a more elaborative and interactive way so that our audience can learn these details without getting bored.


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What is Debt?

Debt in simple terms nothing but how much amount you borrow from others. The due date will be decided by both parties engaged in the transaction. Debt in some terms very healthy as it can help an individual to handle the situation where he fails to meet his expenditure.

This situation can get complicated very fast if you fail to handle and manage your debt. Managing debt is not so easy and it is so tricky sometimes especially when your revenue fails to meet your expenditure.


What Can Be The Forms of Debt/Debt Types


Secured Debt

Secure debt is nothing but if you borrow money by placing any of your assets as collateral then this debt will be called a secured debt. Here in the case where you fail to repay the debt, there is a chance for the financial institution which lends you may cease the assets you placed as collateral.

Your assets will back as security for the issuer so they are mainly termed as secured debts. Mortgage or Loan on a vehicle are examples of secured debt.


Unsecured Debt

Here there is no backup with assets, It has high risk. Here in unsecured debt if a borrower fails to repay the debt on time then the issuer may face difficulties in recovering the money as there is no security backing up.

Unsecured debt always holds a high-interest rate as the risk is higher in this case. Creditcards, Medical Bills, Utility bills, etc are examples of unsecured debt.


Revolving Debt

Here there will be a mutual agreement between the borrower and issuer on the maximum limit till where the borrower can borrow the amount. A credit card is one of the best examples of revolving debt. 

Revolving debt may come with a variable interest rate. Even revolving debt is unsecured and the main advantage of revolving debt is its flexibility. Here there is no need to a paid a fixed amount every month, Your payments are calculated depending on the unpaid borrowings.


Subsections of Debts

The above mentioned are the 3 main categories of debts, Where all the forms of the debts you owe may come under any of these 3 sections. To keep a check on volatility and advantages you must aware of what debt really you are owing.

If when it comes to subsection an individual can have multiple debts in this personal life like Credit card debt, Medical Bill debt, Student loan, Personal loan, Vehicle loan, Business loan, Mortgage, etc.

You may come under any of this section if you hold any debt, So we will be sharing few tips here where you can destroy any of your debt with proper planning in no time.


Is Holding Debt Is The Right Thing To Do?

Absolutely No! Debt can show various impacts on a person’s life, Mainly negative impacts. Credit rating is the rating given by the financial agency where this rating can help in estimating the person’s ability to repay his borrowings. This rating will depend upon the punctuality you have maintained in clearing your debt.

If you have a debt that is uncleared eventually this rating will get affected and you may tend to lose credit points. Low credit points enhance the probability of future loans to get low.

When you fail to meet your expenditure you must look after for a loan, If you already have debt lurking on you how can you manage? This can affect your physical and mental strength.

By thinking of various solutions you might spend various sleepless nights, anxious, etc. Your personal health will play the real victim card. There comes the next effect on relationships.

When you face mental trauma your ideas and routine get affected. Lacking ideas, Poor health management, Social enclosure all these factors can push you to a Debt Trap‘ and can result in Money Anxiety‘.

So by this decide holding debt is the right idea or not? Definitely, you may bond with us, right? So how exactly you can destroy your debt? Follow this article.


Tips and Habits From The People Who Destroyed Debt

We will become what we repeatedly do‘, Yes your habits really decide what you really are.  Here is the detailed list where you can learn the habits of the people who are always debt-free.


1. Start Maintaining Budget

Any financial expert you choose to plan your ideas on personal financing the first thing everyone advises will be to maintain or plan your budget. This is routine but the most effective and the most implemented idea by all the successful people who destroyed their debt all along.

What exactly is a budget? The budget is nothing but a well-organized plan. This is mainly a financial plan for a particular time frame where you must organize all your Revenues, Expenditures, and Debts as well.

Budget can give you a clear picture of your whole financial run, Once you figure out the whole thing you can plan accordingly without ending up in debts.

If you are a beginner always start from zero budgeting this means to negotiate your previous savings to zero. Start as if you are holding nothing in your savings this can create an additional edge to add more savings for your future. 

Your financial routine will change on a monthly basis so adjust your monthly expenses and balance it with the savings you have incurred.

Prioritize important things like Food, Clothing, Shelter, and Transportation on other lavish things. With this, you can save more money than you plan. Avoid unnecessary spending, and track your progress all along to reach your financial goals. 

Always try to create emergency funds that could act as a buffer. Use Budgeting tools or consult a financial advisor to better make use of your budget.

Related: 11 Significant Costs To Cut When You’re Broke.


2. Follow the 50-30-20 Rule

Are you aware of this rule coined by Senator Elizabeth Warren in her book called All Your Work: The Ultimate Lifetime Money Plan. 

 If you are earning inconsistent income follow the best budgeting rule of the ‘50-30-20 rule‘. In a total of 100 percent of your income spend 50 percent on unavoidable needs like food and shelter. The next 30 percent must spend on your wants, The last 20 percent must always go into savings and investment. 

Always remember you can cut down the percentage of the first 2 elements in the rule but never cut down the savings percentage. Savings and investments must be your first priority.

Also read, How To Live Frugally On One Income: 45+ Simple Tips That Work.


3. Avoid Worst Ways In Paying Debts

Sometimes we may not pay some debts due to the insufficiency of funds in our wallets but this situation cannot be overturned. But what if you deliberately avoid paying some debts for your unprioritized spending?

If you are one among them, try to avoid this habit at any cost to destroy your debt in the meantime. You must also avoid paying little amounts as that could make you pay more interest rates.

Never disturb your emergency funds to clear your debts that could turn to opt for additional debt in emergency cases. Always cut down your credit card advances to avoid cash advance fees.

Cashing out 401k or any other retirement plan can also be one of the worst ideas to destruct your debt. You might have come across a few people who may consolidate their debt by opting for another debt that could be the worst possible idea.

Any way you choose from above can only help you to destroy your debt but cannot build you financially sustain for long. Your vision must always be on long term goals than a short time.

Also read, 18 Personal Finance Hacks That Make You Rich.


4. Create Additional Income Streams

Remember, Never ever rely on a single income source if you really intend to destroy your debt. If you are of working age choose a second job it can be of anything you are interested in. You can even work on weekends to accommodate your full-time job.

Anything more than your regular earnings can be helpful in your way of destructing your debt and can create additional savings. If you are looking to be in a better financial position than what you are now opting for additional income streams would be handy.

What jobs to choose with? Is this really reliable to choose these jobs in 2020? and many questions will chunk your mind. Leave all of them aside, trust our words, Keep all your social networking sites aside and immediately start creating additional income sources.

To assist you with this here we link a few jobs that can help you along the way. If you are aware of starting your business in any of them, then it is very much fine, but what if you aren’t aware of it? 

For this, we will link a few courses which are very affordable and can help you start your additional income source in no time and can destroy your debt efficiently by progress in your savings and earnings.

Freelance Writing

If you are good at writing content and have the best writing skills, They are many opportunities waiting for you. One can earn more than $50000 by working part-time or full time. 

How about starting a business in this relative field by learning all the tips and details with writing tips within 30 days? Amazing right! Check this course That’ll guide you to achieve Success in Freelance Writing in less than 30 Days.


Blogging has the highest potential of all the work from home jobs. This would even stand in the suggestions list of financial experts if you consult them on to start as the second job. But to start a blog and to make it successful is not so easy. It requires a lot of patience and hard work. You cannot get overnight success in this field.

But once you are established you can earn more than what you are earning than your full-time job for sure. Signup for Earn More Blogging FREE Workshop.

Virtual Assistant

Here virtual assistant job can offer you the flexibility to work from any remotest location. Here all you have to do is by assisting clients in creative or technical ways. But if you are relatively new to virtual assistance don’t bother. You can nearly $20000 as a beginner and nearly up to $100000 as an expert virtual assistant, It’s huge and impressive, right? Why the wait is for Learn the best tips and tricks of VirtualAssistance within 30 days.  This can save money and as well as time.


There is a high demand for proofreading in the market as all freelance writers cannot engage in proofreading individual articles due to paucity of time. Proofreading is the most important part to be conducted on content to avoid plagiarism and also to increase the efficiency of it. Learn how Caitlin Pyle earned more than $45000 by just working 25 hours a week.

For more, Have a look at 70 surprising ways to earn extra money and destroy your debt by starting one.


5. Stay Near To The Reality

Always try to accept reality, Accept the position where you are. Never compare with others and create additional problems for your personal and financial life. Never choose to buy items that are of no use to you for just showing others that you hold a new product.

This showoff nature not just creates an additional burden on the financial pocket but can also affect your systematic plan in the long run. What’s a big deal in avoiding which is trending in the market, if you have enough savings without debts. 

Always choose to stay simple by choosing wisely between have’s and have not’s. Never hesitate to take financial suggestions and work on them properly. Clear your debts first, Your debts must not affect your reality.

Always make a list of your debts and mark goals/targets to clear them. Don’t take a back step to trim your budget on Shopping, Amusements, Clothing, Netflix, etc if it is not necessary.

Even though you plan to shop, compare the prices on your browser and choose the best among them. There are many online retailing companies like Rakuten that give freebies like cashback offers and also special discounts.

Always keep your receipts safe in order to track your spendings. You can also claim some offers from Fetch Rewards by just snapping at your receipts. Every penny is valuable!

Do Check, 9 Habits Of Parents Who Always Have Money.


6. Save and Invest

Do you remember a famous quote ‘A penny saved is worth the 2 pennies earned’? It is always important to find ways to save money and reinvest them.  Always double your savings. If you have trouble finding ways to save money here are 117 creative ideas waiting for you to save more money.

Recommended: Investing 101- Investing Strategies To Grow Rich( For Beginners)



Detailing is as important as implementation. One must know all the relative terminologies and processes behind what he is doing. By now we hope you might learn what exactly is debt and how impactful it is on an individual’s life. 

So never ever get trapped in debt, In unavoidable situations, bearable debts are very much encouraged but they should never cross their limit. Your planning and budgeting must be efficient to overcome debt.

By following all the steps mentioned above you can not only destroy your debt but can also attain financial freedom for what we are all thriving. Even though you are debt trapped never lose your courage to gain back the momentum there is always a plan B waiting for you.

Destroy debt and find the real balance for your life.


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