Being debt free is becoming increasingly more important in this day and age and less common. Contrary to common belief, those that are debt free are experiencing life in a totally different boat than others. Here are some tips so you can get in on this luxury ship and off the dinghy you’re in.
Credit Card Eviction
It’s been reported that while older Americans above age 50 are getting into more consumer debt than ever, younger Americans are spending less on credit than their older counterparts. The first tip is finding a creative way to banish them from your wallet. This will be empowering as it will now force you to financially depend upon yourself. Using reporting websites like https://www.creditrepair.com/ will allow you to see exactly what debts you have and how much is being reported. Staying educated on your expenses and existing debt is one of the first steps towards cutting credit cards out of you financially routine.
The second tip is to deliberately spend your money on paper before you even get it. This is being intentional with your money. This has become a bit of a lost art these days. But budgeting is an essential aspect of being aware of your expenses, income, and in turn keeping you out of debt and living a very balanced lifestyle.
The third tip to getting debt free says more about your behavior than it does about the numbers. If you can change your spending habits, then you can get debt free. Start with the smallest debt first while paying minimum payments on all other debts. The smallest debt will be focused on with fierce intensity as you apply all extra money to paying this debt off. Paying off the smallest debt will spark that dynamite stick of ferocious motivation.
Once the smallest debt has been paid, apply that payment and all surplus cash to the next smallest debt while still paying minimum payments on all other debts. Tip four is to continue this process until all debts have been paid.
Tip five is the time to stock pile cash for at least three to six months worth of expenses. This way when something significant happens in your life, you can depend on yourself to flip the bill. This is important no matter where you are in life. Things happen, and being able to support yourself and have money saved away for a rainy day is always a beneficial endeavor.
Tip six gets you that debt free status. Apply every penny possible towards owning your home outright.
The sacrifices that are made to achieve debt free status far out-weigh the ball and chain that debt can have not only on our finances, but in every aspect of our lives. The benefits of being debt free will ultimately allow you to save and buy the things you want, go on that family vacation, help out that family member in need and most importantly, it allows you to live life like you never have before.
With these tips in mind, you will be able to pull yourself out of debt in no time and realize the importance of staying out of debt. And just think, staying out of debt will be nothing compared to getting yourself out of debt. Just be aware of what your actual expenses are and cut them as low as you can get them. Then stick at it. Good luck!