This Loan-Free Life Strategy Made Me Debt-Free by 35

Tired of endless debt payments? Dream of financial freedom before 40? Millions struggle with loans, credit cards, and mounting bills. But smart strategies can break this cycle. Let's explore how to achieve debt-free living in this blog.

1. Use the Debt-Snowball Method

The Debt Snowball Method is a straightforward approach to paying off debt. You list all debts from the smallest to the largest. Pay the minimum on all, but focus extra money on the smallest. Once that is paid, move to the next. This builds motivation as you see progress.

Example: Vishal's Debt Plan
 

Vishal can pay ₹9,000 monthly. He pays ₹6,000 as minimums on the personal and education loans. He uses the remaining ₹3,000 to pay off the credit card. After clearing it, he adds that ₹3,000 to the ₹2,000 for the personal loan, paying ₹5,000 monthly. Once that's cleared, he pays ₹9,000 towards the education loan.

This method helped Vishal become debt-free by 35.

2. Adopt a No-Spend Period

A no-spend period means not spending money on non-essential items for a set time. This helps save money and build better habits. It also helps you see where your money goes. By doing this, you can pay off debt faster and save more. It builds discipline and reduces stress.

Let’s look at Jatin’s example. He is a 28-year-old from Bengaluru. He earns ₹50,000 per month. He decides to do a no-spend month.
 

In one month, Jatin saves ₹12,000. He uses this to pay off his credit card. He feels more in control and plans to do this again.

3. Downsize and Boost Income

Living a loan-free life by 35 is possible with two key steps: downsizing and boosting income. Downsizing means cutting unnecessary expenses like eating out, subscriptions, or moving to a smaller home. This frees up money to pay off debts faster. 

Boosting income involves taking up side jobs, freelancing, or selling unused items. Even small extra earnings can make a big difference.

Let’s see how Nitin, a 25-year-old from Bengaluru, achieved this:
 

By saving ₹25,500 monthly, Nitin cleared a ₹10,00,000 loan in just over 3 years. He stayed disciplined and avoided new debts. Simple choices led to big results.

4. Create a Dedicated “Debt-Crusher” Account
 

Creating a dedicated “Debt-Crusher” account helps you focus on clearing debt faster. This is a separate savings account used only for extra debt payments. Each month, you transfer a fixed amount into it. This builds discipline and prevents spending that money elsewhere.

Let’s see how Vivek, a 28-year-old from Bengaluru, used this method:
 

By consistently adding ₹5,000 from his “Debt-Crusher” account, Vivek paid off his ₹2,00,000 loan in just over a year. This method gave him control and motivation.

5. Shift Your Mindset & Adapt

To live a loan-free life, you must change your thinking. Start by spending less and saving more. Avoid buying things you do not need. Plan your expenses and stick to your budget. This mindset helps you stay away from debt and build a secure future.

Let’s see how Umesh, a 25-year-old from Bengaluru, became debt-free by 35:
 

Umesh increased his income and controlled his spending. He used his savings to repay debts and avoided new loans. By age 29, he was debt-free. He continued saving and investing, achieving financial freedom by 35.

Conclusion

By following these simple steps, like clearing debts step by step, cutting unnecessary spending, earning extra, and staying disciplined.

FAQs

1. What is the debt snowball method?

Pay off small debts first to stay motivated.

2. How does a no-spend period help?

Saves money by cutting unnecessary spending.

3. Can downsizing really clear debt faster?

Yes, lower expenses mean more money for repayments.

4. Why use a "Debt-Crusher" account?

Keeps extra payments separate, speeding up debt clearance.

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LoansJagat Team

We are a team of writers, editors, and proofreaders with 15+ years of experience in the finance field. We are your personal finance gurus! But, we will explain everything in simplified language. Our aim is to make personal and business finance easier for you. While we help you upgrade your financial knowledge, why don't you read some of our blogs?