Managing, and escaping from, debt requires discipline and determination. But if you can cut down on your expenses and set up a regular repayment program, you can free yourself of debt issues and back into credit.
Debt seems to be a national pass time – what ever nation in which you find yourself. Lenders seem to benefit from convincing consumers to stretch beyond what an income allows. Credit card companies can almost be heard celebrating with each late payment that is chalked up or interest that is raised because of accounts in arrears.
It’s time to take our lives, and our financial situations, back into our own hands. The only way this will ever be accomplished is when we stand up – even if it’s one by one – and yell “no more debt.” Then it is time to drag our lives into the world of debt freedom.
The only way to get debt free is to quit acquiring debt. This usually means cutting up credit cards, not carrying debit cards, and paying actual cash for every purchase. You remember cash – it’s that folding, paper stuff you use to carry in your wallet. If you limit purchases to this cash on hand, you will find that it is easier for you to make a budget and stick to the budget.
This leads me to the second step towards debt freedom. You need to have a list of all income and all expenses. Break it down by the way your income comes in – weekly, biweekly, monthly, yearly. Making a budget will get you to financial freedom in no time.
In the budget you need to include the debts you have incurred. Set aside an extra ten dollars a week (or what ever amount you can afford) that you can apply to the highest interest debt you have. Once this debt is paid off, roll the money (the extra plus the payment amount) on to the next highest interest rate. Continue this stair step approach until all the debts are paid in full.
Once you make your way to debt freedom, never go back. Lenders will still be lurking around waiting for your weak moment. Don’t be tempted. Remember any thing that is truly worth having is worth waiting for. Save, pay cash, and live free.
