Debt Is The American Way, Isn’t It?
Debt-Free Living Is Really The Way To Go
It seems like in America today everyone is in debt; heck even the federal government cannot keep a lid on their debt. However just because it is easy to rack up your debt and everyone seems to be doing it does not make debt a good thing. Debt is bad, debt-free is good. Is it hard to get yourself into a debt-free lifestyle? Absolutely, but it is definitely worth the effort. By living a debt-free lifestyle you will have more money, less stress, more time and a better credit score. What’s not to like about all of those positives? A lot of people think that going into debt is the only way to get ahead. Unfortunately that misleading concept is damaging. Some debt is necessary, how could you buy a house without a mortgage? But building up debt for daily living expenses is an unhealthy financial habit that you want to avoid or fix. The first step towards going debt-free is to admit to yourself that you have debt issues.
3 Reasons To Go Debt-Free
#1 – Debt Is Double
Debt is expensive. A debt-free lifestyle will actually put more money in your pocket.
Hard to believe right? Well think about it; if you do not have to pay hundreds of dollars on fees and interest from credit cards, mortgages, car loans, student loans and other debt are you not saving money? You actually pay double for any purchase you pay with a credit card. Why do you want to pay double for things? Imagine how big your retirement plan will become when you take the money that you save on your debt expense and invest it.
So since you now understand how expensive debt is, what can you do about it? Start by asking yourself some serious questions. Do you want to pay off your debt? Do you want to stop accumulating debt? Will you do whatever it takes to make that happen? What are you willing to do go debt-free? Are you willing to monitor your spending habits and change them if necessary? Are you ready to stop using credit cards for all purchases and pay cash instead? Will you cut up your credit cards? Will you start thinking about the consequences of racking up credit card debt before you make any credit card purchases?
You’ve asked the questions, now take the actions. Stop paying double for everything you buy, go debt-free.
#2 – Debt Is A Curse
Your credit score is a very important number, it represents you to creditors therefore you want to do everything you can to take care of that score.
Creditors prefer to work with high credit scores vs low scores. Too much debt becomes a curse because debt lowers your credit score. Creditors, retailers, credit card companies all take a dim view of low credit scores because these financial institutions believe low credit scores are the result of sloppy financial habits. They could be wrong about you personally, but they will still give you that label.
Creditors use credit scores to gauge the likelihood or unlikelihood of getting their money back. A low credit score indicates to a creditor that the person with the low score is more likely to not pay back their debt. So what creditors do with low credit scores is increase the cost of everything. Credit card companies charge higher interest rates, mortgage companies charge higher interest rates, landlords charge higher rental rates, cellular phone companies and utility companies do the same. So just because you are overloaded with debt you get punished and have to pay more for everything you buy. Well, it is what it is.
But now that you see how debt can curse your finances, what can you do about it? Are you willing to do whatever it takes? Then start by changing your spending habits. If you cannot afford to pay cash, walk away, do not buy something that has to go on a credit card. You will be amazed how much debt you will eliminate by eliminating the use of credit cards.
#3 – Debt Is Stressful & A Waste Of Time
Want to reduce your life’s stress level? Just start the process of setting yourself up to go debt-free.
When you no longer have credit card bills, car payments, mortgage loan payments and threatening calls from collection agencies, your life will be less stressful. When you are debt-free you will no longer be a slave. Debt turns us into slaves. Whether we like it or not, or even believe it, when we are in debt, we become a slave to that debt. When you are in debt, your whole life revolves around it. We are always worried about making ends meet or living from pay check to pay check. You have to shuffle your pay checks around to pay your bills. You have to be careful about managing every single nickel. Do you really have time for that?
Financial worries can be very stressful on ourselves and our loved ones. If you start going debt-free you won’t have to screen your calls for creditor calls or worry about late payment notices anymore. With little or no debt you will be able to worry less and relax more.
Make The Change
Go The Debt-Free Way
With all the reasons we listed on why debt is bad and debt free is good, do you now understand why you want no part of debt?
If you do then congratulations, you have taken the first step towards digging out. Admitting to yourself that you are in trouble and want out is a big step. Adjusting your attitude about debt is the biggest step to help get out of debt and also stay out of it. Now if you feel you are on the right path and have the right attitude but still need a bit more help, there are many sources of credit relief available to you. You can research debt counselors, debt relief company’s and consolidation programs. But before you make the call, do your research, find the help that you are the most comfortable with. Find someone at one of these credit relief organizations that you feel that you can work with. Make the change, go debt free so that you can save money plus eliminate your financial worries and concerns.