Living a Debt Free Life

debt free

It is possible to live in a debt free life, you might be struggling to pay the debts that you have and wonder if you ever will be free but it is possible and something that once you have achieved you never want to go back to your old ways. This journey will be easier if you accept the reasons that you have found yourself in debt, it is no good blaming them it is just something that you have to accept and move forward with.


The first step to debt free living is to create a budget. It is not something that can be written on the back of an envelope never to be looked at again. You have to take this process seriously. You need to formulate a budget that works for you, you should not be short of cash middle of the month, and it should flow right through to the end of the month if you have worked it out correctly.

  • Include all the money coming in.
  • Include all the bills that you owe money too.
  • Include money to save as well; it will stop you needing to borrow in the future.

Credit cards

If you feel that it is important that you have a credit card, limit yourself to one card and make sure that you are able to pay off everything that you put on it every month. This will mean that you are not going to make the situation worse by increasing any debt that you owe with needless interest payments.

Avoid just paying the minimum amount

When it comes to your debts, if you only ever pay the minimum amount of the debt owed then the debt will take for ever to pay off. You need to be paying more money each month to existing debts.


Write down all the debts that you owe money to, this gives you ownership of the debt and the actual amount of money that you owe. It is possible to think about looking at your credit report, to see if you can make that any better so that you are in a better financial position in the future.

Build an emergency fund

It is important that you build up some savings, if you have money for an emergency it will mean that you do not need to get further credit and making your situation worse.

Avoid borrowing too much

It is important that you do not borrow more money than you can comfortably afford to repay. This is where that you can run into problems and living a debt free life becomes a dream instead of a reality.

Balance transfer

If you have a credit card and there are some interest free credit cards around then this is a possibility that you might consider. It might be a chance that you can split the full amount over the period of interest free to see if you can clear of the balance before the interest free period runs out.

Consider a consolidation loan

It might be possible to save money if you consider putting all your debts into a consolidation loan. This will mean one monthly payment and it should be lower than the combined total of your debts. The interest rate will also be lower, this will mean that you will be able to plan this expense into your budget and you should start to see the end of this loan and living a debt free life.


To live a debt free life then you will need to think about the money that you spend each month. You want to be in control of the money and know what you have each month to spend in any category, it is important that you still have some money for fun, but you might need to limit this.


It is important that you get a system in place where you are making progress to get rid of the debt that you owe and this is possible if you use the snowball system. This system means that you need to list all of your debts and the interest rates that you are paying and you pay a fixed amount of each of the bills accept one and you aim to put as much money as you can each month to this one debt until it is paid off. Then you start again with the next debt on your list until they are all paid off.


If you want to live debt free then stop borrowing any more money, stop using any form of credit. This will make you look at the purchases that you make and it will keep you on track for the dream of living without any debt.

Remember when you are debt free save for those unexpected bills and that way you will have the money and not need to borrow again.