HOW TO BREAK FREE FROM DEBT IN 2024

Debt is that four-letter word that sends shivers down spines and keeps us tossing in our beds at night. We all know it, some of us deal with it daily, and breaking free can be such a daunting task. But fear not, we can help you learn how to break free from debt.

Remember that feeling after “Detty December”? When the pockets become lighter than air, the bank account sings the blues, We’ve all been there. But listen, that suffocating cycle of debt doesn’t have to be our reality.  We can all break away from that cycle with the right planning and budgeting. Be it the smallest utility bills like Electricity, Data, Airtime, or even Cable TV subscriptions, using a fast and reliable Mobile application like Vasrefil can help you become financially responsible and make debt paying easy.

Imagine this: a future where crisp or mint naira notes jingle in your purse, where “borrow borrow” is a distant memory, and where you walk into the Market confidently, and not sweat. Sounds good, right? Well, guess what? That future is closer than you think. 

First things first, own your debt. Pretending it doesn’t exist won’t make it disappear. Gather your statements, and list every debt down, from Mama Sarah’s market credit to that tempting phone loan tempting you with its shiny “3 cameras”. Seeing the numbers face-to-face might sting, but trust me, it’s the first step to financial clarity.   Sit down and crunch the numbers. Figure out how much you owe and when it needs to be paid. Make a plan for how to manage your debts and stick to it, that way, you one step into breaking free from debts.

Step 2: Create a Realistic Budget

One of the proven ways in which you can break free from debts is Budgeting. In maintaining a realistic budget, you must know how to: Track your spending, define your values, be flexible, and get creative with your finances like maintaining home-cooked meals rather than dining out.

Remember that sumptuous meal from ‘The Place‘ that mysteriously cost your entire weekly budget? Yeah, we’ve all been there too. Every kobo that leaves your pocket needs to answer for itself. Download a budgeting app, or grab a notebook to figure out what’s essential like food, rent, and transportation, and also, set aside utility bills like Electricity, data/Internet, Airtime, and Cable TV subscriptions. (Vasrefil is your one-stop shop to sort your utility bills). So you can identify what’s draining your financial energy 

Step 3: Prioritize High-Interest Debts.

Look, debt is like a stubborn weed in your financial garden. It sucks up the good stuff and leaves you with nothing but stress. So, we need to tackle it strategically to break free from it. There are two main schools of thought: the Debt Avalanche (focusing on high-interest debts first) and the Debt Snowball (paying off the smallest debts first for those quick wins). Decide which one works for your financial psyche and take on those interest monsters head-on.  Track your progress and adjust your plan as needed. Celebrate small victories and stay motivated. Keep at it and you will be free from debt soon.

Step 4: Increase Your Income (Get a side hustle)

Let’s face it, salary alone might not be enough to help settle all your debts. It just might be the time to unleash your inner hustling spirit! Whether you’re selling your incredible braiding skills online, teaching dance classes on weekends, or learning how to do content creation, find a side hustle that puts extra naira in your pocket. Some important things to note in taking a side hustle are:

•  Know Your Strengths (and Monetize Them): What are you good at? Writing, coding, design, photography? Analyze your skills and passions. Can you turn them into a profitable side hustle?  There are a lot of opportunities.
• Time Management: Being busy is different from being productive. Master time management techniques. Micro-tasks, efficient schedules, and batching similar tasks can squeeze extra income-generating hours out of your day.
• Passion Project Payday: Turn your hobby into a side hustle. Bake delicious treats and sell them at farmers’ markets, craft stunning jewelry for online marketplaces, or offer pet-sitting services through local networks. Passion fuels motivation and success.

Remember, every drop in the bucket counts towards your freedom from debts.

Let’s make saving effortless, my friend. Set up automatic transfers from your account to a savings goal. Think of it as planting financial seeds for a brighter future. Every time you see that “money-gone-missing” notification, remember, it’s growing your financial forest, one naira at a time.

Remember those new shoes that promised happiness but left you with a huge credit card bill? Yeah, those. Learn to say no to unnecessary spending. Delay gratification, and watch yourself gain freedom from debt.

Step 7: Seek Financial Education:

Don’t be afraid to reach out for help. Talk to a financial advisor, join a debt support group, or even chat with that wise elderly neighbor who always has a proverb for every situation. Remember, knowledge is power, and sharing your struggles can open doors to solutions you never imagined.

Conclusion

In conclusion, breaking free from debt isn’t a sprint, it’s a marathon. There will be bumps along the way, but with determination, smart strategies, and a dash of hustle, you can rewrite your financial story. It’s not about being rich, it’s about having control over your money and your future. So, do away with the debt demon, embrace the budgeting boss within, and walk into that future with your head held high and your pockets full of financial freedom.