Rising debts are a matter of concern for many people. We find people searching for ways to deal with their debt problems and bring back their old days of prosperity. Living a debt-free life is possible with concentrated efforts from your side. The tips and suggestions provided in the next few paragraphs will help you know things better. Ensure Income Stability If you think logically, you can fulfill most of your needs in life by having a stable income. The idea is to have a constant or rising income and make purchases of your choice, from your savings, instead of opting for a loan from a bank or any financial institution. The loan which you get, comes with an interest and this leads to less income in hand, because of monthly installment payments. Interest rates can fluctuate a lot and in times of recession, they can rise to a great level. Ergo, as far as possible, try to make all purchases from your savings. Realize the Importance of Savings Living without debt is definitely possible if you can save a good amount of money every month. For this, a lot of financial planning is required. You need to plan your finances in such a manner that you have excess investible surplus, which can be invested in equities or debt instruments to generate more cash. This will help you increase your net worth and possess all things in life you wish for, without having to go to banks for loans. Avoid Excessive Credit Card Purchases Exercise strict control on your credit card expenses. Often, many people make excess credit card purchases and end up being in trouble, when the repayment program goes for a toss. Not paying credit card dues on time can result into imposing of late penalty from banks. Late payments or defaults made from your side will result into weakening of credit score which is not good for you at all, if you wish to take any credit in future. Many people have the habit of owning multiple credit cards which can be quite disastrous. What you can do in this regard is transfer all your debt to a single card which will make things simpler. Take Help from Credit Counseling Agencies If you have piled up loans beyond your capacity, you should approach some credit counseling agency which can negotiate for a better repayment plan for you with your creditors. This negotiation can result into revised interest rates for you which would be lower than the earlier ones. This would be possible, only after your credit counseling agency is able to convince the lenders that you are sincerely trying to repay their debt. At the same time, you need to be aware that some agencies might not be able to provide you the kind of support and help you need. Hence, finding alternative ways of dealing with high debt are also equally important. Liquidate your large assets such as residential and commercial properties. Every person needs to introspect and look into his financial position seriously before accepting any kind of loan to avoid falling into financial troubles. Save more, spend less on unnecessary things, and invest as much as you can to live a debt-free life.