What’s the secret to get out of debts? The way to get out of debt and achieve our financial freedom is to be true to our selves. We need to accept the truth on what we are and what we are not. We need to find and utilize our true capabilities so that we may earn more revenue and make money. We need to enhance our skills, knowledge and talents so that we may become more marketable and valuable. Then we need to throw away our fantasies so that we may reduce our expenses and save money. Too much pleasures and vices cause our pocket and bank accounts to dwindle, resulting into poverty. We should not also break our promises so that we may not incur extra fees. We must pay our obligation on time: debt amortization, bills, taxes, et cetera so that we can avoid penalties and other extra charges.
Debt is the difference of you asset over your equity. This means if we acquire more assets for our consumption without enough equity, our debt will increase. Equity is our accumulated income or losses. This means that if we will not work more to earn revenue, and if we will not control our expenses, we will not earn income. Thus, it decreases our equity and increase our debt. Therefore, we need to properly account all our assets (resources), liabilities (debts) and equity (accumulated revenues over expenses).
Thus, the secret to get out of debts – is to find out the truth (proper accounting and auditing), standing for this truth (honesty and self-discipline), and working for the truth (diligence).