I had once taken personal loan. For some months I could pay EMIs without difficulty. Then I started facing some financial problems. I defaulted on two EMIs. Then I decided to cut down my expenses as much as I could. I started writing down daily expenses and decided to cut expenses whereever I could. I moved to a smaller house, where the rent is lower. Earlier I was purchasing mineral water as the tap water was not fit for drinking. But I stopped that. Instead I started boiling water at home and filtering it through a clean piece of cloth. I did not know how to cook. Earlier I was eating in restaurants. But I stopped that and learned how to cook. After a few failed attempts, I could learn cooking. Earlier I had the habit of often drinking soft drinks. I stopped that also. In other ways also, I cut down my expenses. Two months back, I paid all of my EMIs. Now I do not have any loan on me. So I feel relaxed.
Re: Make list of expenses
by santosh ghadage on Oct 12, 2010 06:48 AM
I too have followed few of your steps to come out of debt. Also, you have done it in structured manner. Thanks for info.
It is not out of context to remind ourselves here that "Sustainability" is all about consuming less while "Economy" is all about enhancing consumption. I think the Indian way of life practiced "Sustainability" much before it caught the fancy of Westerners. Unfortunately What is happening now in India is we are loosing sight of our way of life, especially with the explosion of Cable TV network bombarding, inducing and tempting us to spend more and more.
Re: important
by vadlamudi srinivas on Oct 08, 2010 11:54 AM
Right thing to do in the times of materialistic lives and no understanding related to finances
Re: simple formula to come out of debt.
by rajesh balakrishnan on Oct 08, 2010 10:01 PM
you shoudl say dont buy any big liabalities, we should kwow which is asset and which is not
How come the rediff has started posting quality content like this one. Till yesterday they were posting things like twitter and insurance claim. That was a fictitious story. But this debt management article is a quality one. Hope this will help many to come out of debt and stay out of debt.
The other important thing is to know the reason for your indebtedness, and work out a standing plan to avoid the same in future. We are responsible for what we are and the buck should stop with us.
This one has got posted when the younger generation is going after the wetern economy. That is spending a lot and saving very less. Hope the younger generation modifies their lifestyle after reading this posting.
