Becoming debt free should be everyone’s goal, especially in these days of economic upheaval. For many it is difficult to accept the fact that we can lead a debt free life. We are so used to debt in its myriad forms that living free is inconceivable. Our credit card is the biggest culprit of all. We pay heavily for using this plastic tempter (more of a tough ogre than a flexible friend) which encourages us to spend way beyond our means. The Banks are smart enough to make as much profit from those of us who are tempted by levying high interest on the outstanding amount. You are in fact turned into a slave working day in day out, just to pay interest on your credit card. This may seem a hard think to say, but for many it is a reality. Of course most of us never realise that we are falling into a debt trap until we actually find the costs of debt have risen beyond our means to pay.

By this time it is too late. The first step towards a debt free life is therefore to get rid of the credit card. You must immediately destroy your credit card and commit never to live off your future labours.

If by chance you are beyond the stage of attaining debt freedom and are staring at bankruptcy, it is still not too late. There are several options you must consider before opting for bankruptcy. It is advisable to approach a professional rather than try to do it yourself. The legal issues might be too subtle for you to understand and ultimately you may get yourself in a tangle. Moreover with each passing day your debt will keep increasing as the Banks will pile up interest upon interest.

One option is to take on an IVA or Individual Voluntary Agreement which allows you to repay your debts at a manageable rate over 5 years. As part of an IVA the first step would be to inform your creditors about the steps being adopted by you to become debt free. You would stop making payments, till you reach an agreement with the creditors and then usually have an Insolvency Practitioner or independent Financial Advisor make the payments to each creditor on your behalf. By restructuring your debt payments you can eventually become debt free in a relatively short time frame.

In your hurry to become debt free, you may succumb to the pressure by Banks to convert your unsecured loans into secured. Never do such a thing. By doing this you will be jeopardising all your hard earned wealth, including your home and car. This ploy is tried by all the Bankers and not surprisingly many individuals accept this arrangement in order to reduce the feeling of pressure. It needs no emphasis that banks clothe this act by promising easy repayment terms over a longer period. Just remember that banks are not run for the benefit of the customer, they are run for the profit of the share holders.

The legal fraternity and consumer forums are well aware of this fact and have taken remedial measures to safeguard individual debtors. In fact , many of the contracts signed by individuals for credit cards and personal unsecured loans, before April 2007, are not enforceable in a court of law. In such circumstances becoming debt free can be a painless affair. It may well be worth checking to see if your contract is enforceable or not. This means you can become debt free if you are one of the many in this position. The only piece of advice would be for you to approach a professional to interpret your contract . Whilst this is not always the easiest route to take it can for many be the fastest way to become debt free and one that is always worth investigating.