Making the Shift to Debt Free Living
Debt free living is within your reach! The average U.S. family has eight credit cards and is about $9 400 in debt. No matter how much debt you are in now, you can get out of it and become financially free. Does living debt-free mean going without the things you need? Sometimes it might mean exactly that, but living without debt is no ordinary kind of freedom.
Debt free living needs discipline and commitment to a different lifestyle and it starts with a change in the way you think. Do you feel that you would be lost without your credit cards? If your answer is yes, this is a problem. Why? While it is very tempting to buy items on a credit card, living with a substantial amount of debt can begin to feel pretty disempowering.
Sure, it may give you a temporary boost to go out and shop till you drop but you are really spending money you don't have. If you consistently pay only the minimum on your cards and keep spending you will never get rid of your debt. Debt free living means no longer being a slave to your desires.
Because interest rates are so high on credit cards you are always going to be paying more that what the items are actually worth. Debt free living may mean waiting a little longer for what you want - but in the end you are getting a better deal. No high interest charges and no debt!
Have you considered what would happen if you lost your job? Do you have any money saved for a medical emergency or crisis? You could use the money you save with debt free living to create a nice little nest egg for you and your family. Sure, that new pair of jeans or table lamp may be cute but what are the important things in life? How much 'stuff' do you really need? Debt free living means changing your mind as well as your life.
How can you make the change to debt free living? While it may be acceptable to take out a loan for housing and education - you can consider paying cash for all your other purchases. That means groceries, utilities, clothes and eating out. While fly now, pay later may seem attractive it only works if you have enough money available to consistently pay much more than the minimum. Having a mortgage or educational loan is more than enough debt for any family.
Debt free living will enable you to save more money, create a safety net for your family and give you the power to say 'No' when you need to. The traps and pitfalls of spiraling debt are numerous. One glance at the many companies profiting from your financial irresponsibility and you should be convinced that you need to take control. Avoid becoming a statistic - start living debt free!
