Moneywatch101, Personal Finance, Money, Life, Debt, Savings
Make Debt Freedom a Priority, and not an after thought.
Do you want to learn the real way to get out of debt? I know some of you think that holding on to debt is ok, as long as the payment is manageable. Everyday people in this society take out loans to fund an expensive purchase, while rewarding the lender with payments including an interest rate. The difference people must realize is that buying on future credit is really hurting how financially sound you will be now in the present, in addition to the future.
Who really benefits when you take out a loan? Yes you get a car you couldn’t afford, and maybe you finally can get that expensive computer so that you can blog from home. If you did not plan and save for major purchases, then you just lost out and the lender wins. They even win if you get a 0% percent financing deal. The cash flow drain by getting a loan hurts your chances to save for a secure financial foundation. Thus you become dependent on your job to maintain a pay as you go life, which can really mean living paycheck to paycheck for those people excessively indebted.
Now with the debt discussion mentioned above the foundation is set and geared towards abolishing debt. How can anyone who is fed up, ready to be free, and anxious to get out the debt free diploma?
The real way to get out of debt is to be fixated about getting out of it. This coupled with a real emotional shift behind not adding debt during the process. This is the most important step in the freedom pursuit, because many people cannot grasp the fact that adding new debt to get out of old debt is a problem. The interest rate is not that big of a deal when you average out the numbers. The biggest tool towards freedom is to send the lender big payments as quickly as possible. If you can spare $400 dollars this month for debt repayments, instead of the usual $300 payment, send the full $400.
Doing that will obviously help you be free at least months sooner depending on the amount you owe. If you consistently can send a bigger dollar amount, you will shave off thousands of dollars in the process. When I bought my first car I was able to pay it off a whole year earlier because I sent in $50-100 extra every month. The thought process is real simple, but very difficult to implement because misguided money will be spent on other things when it could have been used for debt freedom.
Now given the facts, we all know that getting out of debt is harder than it seems, but a simple daily reminder behind the reason why you have decided to be free from debt, will help you succeed. Get into the habit of reciting the freedom in your mind every morning. Set up a weekly reminder on the cell phone to tell you that debt freedom is possible with focus and determination.
Give it your all and you will really surprise yourself with how well your finances will improve. I can attest to this system working because I have been in and out of car / credit card debt, but as of 2012, I made a promise to never again add any form of debt besides a reasonable mortgage to my life, thus giving me the power to handle money effectively, efficiently, and with purpose. I hope you all can join me to take back the cash flow you have been robbed of for years, and to begin paying yourself and not the abominable lenders.
Debt Resource on: MoneyTalksNews.com
Another Debt Resource: Here
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Rich Uncle EL
Pic courtesy of Freedigitalphotos.net by Stuart Miles
The Real way to get out of Debt is a post from: MoneyWatch 101
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