Living Debt Free

Stay Out of Debt Forever
Once you have resolved your debt problems, stay out of debt and plan your future. Being debt free means you can look forward to prosperity. Set yourself with fresh resolve to be free of debt forever.

Keep this debt free concept within you, no matter how prosperous you get. It’s very important that you don’t slip back into the bad debt habit. It’s probably a good time to ignore the TV advice about your credit card “don’t leave home without it”.

Leave your credit card and your check book at home. Take your EFTPOS card with you in case you need any cash from the ATM machine.

Look at what you need to get by on weekly and only draw that amount.  Stick with it. Like anything else, you have to change your debt habit and this is as hard to change as any other habit.

The steps are:

  1. Carry out an action.
  2. Continue the action until it becomes a habit.
  3. Continue the habit until it becomes a practice.
  4. That practice will become freedom.

Make your Changes Now
The world has been subject to the greatest explosion of debt ever. More people are in debt now than ever before and at much higher levels. People are losing their homes in droves and bankruptcies have increased to record levels.

If we switch back to the days of our grandparents, we find that they never purchased anything until they had the money to pay for it. As a result, they never got into debt. It meant that they had to be patient, and they resisted being part of the “I need it now” and “I must have it now” type mentality.

Our grandparents taught our parents a similar philosophy. Somewhere along the line the next generation got a little off track. They are not prepared to wait. They have to have whatever they desire – immediately.

All this has contributed to the increase in credit card debt and other debt.

The Debt Scenario
In general, it goes something like this:

  1. You spend on your credit cards to the limit.
  2. You want a house that is larger than what you need so you take on a high mortgage
  3. Your friend has a new car so you must have one as well and you can’t wait until you have saved up, so you borrow.
  4. Your neighbours have replaced all their furniture and carpet and you feel you need to do the same, so you buy it on credit.
  5. Your friends are all in business so its time to look at running your own show and as you don’t have the money you borrow to purchase.
  6. The real estate market begins to slow down. Interest rates start to rise.
  7. Your firm has been taken over by an overseas company so you lose your job.
  8. People start to lose confidence so sales are down.
  9. There is a general slow-down in the economy and you find that everything you planned is starting to go wrong.
  10. You find your creditors chasing you to have their bills paid and the debt collector starts knocking on your door.
  11. You are worried about losing your business, as well as your car and your home because you can’t keep up the payments on the mortgage and the loans.

You are in a situation where a great majority of people in the USA (as well as people around the world) are in. There is no way out except to make a strong commitment to clear all debts and then stay free of debt.

It’s time to sit down and assess where you are at and then make a decision that if followed, will result in achieving your goals. The decision is to slash all spending and save everything above what you need. Put all your money into clearing debt until you are totally free.

This is how it should go and it will work if you are prepared to commit to making a change now.