Many of us only look into how to start a Debt Free living after we are already in over our heads with the amount of debt that we owe. You may be hoping for a lottery win or some kind of magical lump sum in order to become Debt Free and pay off your credit card debt, store cards and other forms of debt. However, for many of us this may not happen, so it makes sense to look at more practical ways to move forward with debt free living.

So, how to start a debt free living? This can be dependant on a number of factors, such as the amount of debt that you owe, your income and how much disposable income you have.

If you already have debt, it is important that you look at your options. There are a number of debt free solutions which you may wish to consider in order for you to start living debt free…

You may think that bankruptcy is your only option because you can start a debt free living within 12 months of declaring yourself bankrupt. However, bankruptcy is never recommended as the first port of call when thinking about starting your debt free lifestyle as there are long term consequences which cannot be avoided.

One of the most common methods in living debt free is a Debt Management Plan, although this does not mean that you can start your debt free lifestyle right away. But you will be able to make your debts more affordable to you, meaning that you can begin to repay your debts at a rate that you can afford.

An IVA is another way which you may start a debt free living. An IVA means that you must repay your debt for an average period of 60 months. Once you have successfully completed the IVA you will become debt free as any unpaid debt will be written off as part of the agreement.

There are a number of methods on how to start a debt free living, but the best thing that you can do is seek expert DebtFree advice. Our advisors will be able to offer you expert advice on your finances and help you to decide on how best to start your debt free living.