Managing your Freedom from Debt

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.