The decision to tackle your debts is always the most important first step on the journey to debt freedom. However, ensuring the second step – the decision as to how you are going to address your debt – is just as crucial. Here are three different routes, all of which lead to the same debt-free destination, to consider.
#1 – Extreme cutbacks
This option is as tough as it is effective; you strip your outgoings back to the bare bones, eliminating all but the most necessary expenditure. After your essential outgoings have been met, all spare funds are diverted to debt repayment, focusing first on the debts with the highest interest rates.
#2 – Increase your income
The principle of this route is similar to the first point, but the extra funds for debt repayments come not from cutting back across your budget, but from a new income stream. Side hustles are a popular choice for people who want to consider this route.
#3 – Debt management plans
A debt management plan formally agrees on repayments with your creditors, usually freezing or cutting your interest for the majority of the plan. Most DMPs are put in place with the help of a third-party credit counseling agency, and the length of plan varies depending on your circumstances.
#4 – Refinancing
If you own your own home, you may want to consider refinancing in order to consolidate your debts, which can give you a fresh start. If you’re curious about how this route works, then the infographic below is well worth reading…

Infographic Design By Quantum Finance


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True but then again the real problem is the setback that comes our way. I thought I had it all planned then suddenly a major hiccup, I just need to plan straight ahead with not only one but option A, B, C, D, and even E, if there’s such.