Debt free personal finance: A great goal for every household or organization wishing to maximize their future opportunities in life. The “American dream” is to have a family, a car, and a house, and unfortunately, the reality is that debt free personal finance isn’t usually part of what takes place as most people attempt to follow that dream.
"Before borrowing money from a friend,
decide which you need most.”
- American Proverb |
The American dream, by most people’s mindset, costs money, far more money than most people have in their bank accounts. The American dream is beginning to fuel more personal debt than every before in our history. But it doesn’t have to be that way! What so many consumers fail to realize is that debt free personal finance isn’t just for rich people. Ordinary middle-class workers can pay down their credit cards, student loans, and other debts and eventually get out from under the burden of debt altogether -- and stay that way. Part of the problem is that our cultural emphasizes credit cards and other debt-acquiring tools. TV commercials make it look like freedom is just a credit card away! What a bunch of garbage. Although we know in our minds that credit cards just lead to more debt, which leads to more financial woes, well, sometimes those commercials are persuasive. Besides, we’re always hearing about how important it is to have a high FICO score and good credit. You can’t get that without playing the credit game, right? The fact is, you don’t NEED a FICO score. You don’t need credit at all. By adopting a lifestyle of debt free personal finance, you can buy the things you need without having to get involved in the whole credit racket, simply by saving your money, investing it wisely, and spending it carefully. So how do you get out of the debt you’re in and shift to a life without it? While it is difficult work and it may take some time, it can be done, and thousands of people are doing it every day. One good way to start is to make a list of all your debts and arrange them from smallest to largest. Then simply pay them off in that order, starting with the easiest one. You have to keep making payments on the others, of course, but pay as much as you can every month on the one you’re concentrating on. It’s a great feeling when you pay each debt. Each small victory provides a taste of what debt free personal finance will feel like. Then you move on to the next smallest debt, and so on and so forth, earning these small victories on your way to wiping them all out once and for all. The credit card companies don’t want you to do this. They make an obscene profit on finance charges and other fees. They want you to depend on them. Rest assured, you’ll find you are much happier when you’re on your own, out from under the thumb of your creditors.
"Some debts are fun when you are acquiring them,
but none are fun when you set about retiring them."
- Ogden Nash, American Writer |
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Debt is NOT your friend. It's not a wonderful "tool" for building wealth. That's a myth.
