The key to financial happiness? Becoming debt free!
To become debt free is a process, it won’t happen overnight - unless by chance you win the lottery or get an unexpected inheritance or financial windfall. Unfortunately, the liklihood of any of those things happening is slim to none.
"Money and success don't change people;
they merely amplify what is already there."
- Will Smith, Actor |
If you are stuggline with debt, most likely it took years to rack up all the debt you currently have; to become debt free it’s going to take some time to payoff those balances. You have to be realistic about your current financial situation and not expect miracles overnight.
You should also shun any so-called “debt settlement” agency that promises to make the process painless, easy, or fast. Promises of this nature are false, and most likely criminal. The number of debt relief services out there are simply out of control. Don't fall for the false promises of "quick and easy solutions".
Because paying off debt is a long and arduous process, it’s important to have a long-term plan. Be realistic in your expectations so you won't give up easily or get discouraged.
As with any large task, you have to first break it down into smaller "bite sized" pieces. That’s why we recommend the “snowball” method of becoming debt-free, where you pay off your debts from the smallest balance to the largest. Use our free Credit Card Calculators to plan your debt snowball program.
By paying down your debt in this order, you are ensured to experience “winning” sooner, and more often, than if you were paying down the largest debt first. The small wins you experience early on will provide encouragement and momentum, and each win is a cause to celebrate!
Becoming debt free is one of the most important and best decisions you’ll ever make. There is literally no downside to it, except for the sacrifice it requires upfront.
There is no good that comes from being in debt. Having debt means you are tied to some faceless creditor, a creditor who doesn’t care if you lose your job or have an emergency or for some other reason can’t pay your bills on time. All the creditor wants from you , and rightfully expects, is that you make your payments on time as agreed. That's it!
Being a debtor is the equivolent of being a slave - a debtor is slave to the lender. Becoming debt free means experiencing true financial freedom.
Think of the peace of mind you’ll have when all your debts are finally paid off! Think of the extra income you’ll have avaialable and the freedom of choice the money can then provide!
Look at how much of your paycheck each month currently goes to the credit card companies. For many Americans, it’s hundreds of dollars a month! All that money will be yours again, once the debts are gone.
Keep focused and committed to living a debt free lifestyle and celebrate every small victories along the way. Make sure your spouse is committed to working on it too, and that you’re both on the same page - working hard on the agreed upon debt free plans.
Get your children involved in reducing household expenses. Make a game out of it. Track your progress carefully. Work diligently to stay on track with your budgeting plan and to maximize your income.
When it’s all done, you’ll experience such a feeling of relief, pride and utter euphoria that the sacrifices you had to make along the way will seem insignificant.
By taking this approach you’ll not only change your own financial reality, you’ll be setting a shining example for your children - helping them to adopt excellent spending habits that will ensure their future financial stability. Yes, becoming debt free is a true blessing - you will have changed your family tree for years to come.
"What's money?
A man is a success if he gets up in the morning
and goes to bed at night and in between
does what he wants to do.”
- Bob Dylan |
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Debt is NOT your friend. It's not a wonderful "tool" for building wealth. That's a myth.
