Become Debt Free

To become debt free is the ultimate dream of every person. To become debt free completely is a bit unrealistic these days. Still, there are many sites that sell kits, tools and tutorials that supposedly help you become totally debt free. Imagine … having no debts …, … Become debt free with nothing but food and utilities expenses… and so on.

Well, if something sounds too good to be true it probably is. The sad truth, my friend, is that in our day and age, you are like so many of us, likely to have a mortgage, a car payment, a school loan and a few credit cards.

Thus you are never debt free. And there is nothing, absolutely nothing wrong with having some debt and enjoying your life. But staying free from the bad debt is entirely another matter.

Become Debt Free by staying away from bad debt

Bad debt you want a freedom from consists of but not limited to:

• high interest credit cards
• high interest store cards – furniture, electronics, etc.
• big mortgage you obtained with the Stated Income program and now payments are chocking you
• fancy foreign car that cost more than small house in the woods and breaks down often enough to make your dealer repair shop happy
• fancy Ivy League school where tuitions are sky high but oops, you forgot what your major was last time you cared - and your student loan monthly payment is about what you earn in two weeks

I can go on and on but you got the picture. If not, you need some serious mental help. The goal to become debt free is the difficult one.

Let’s make it clear – unless you are willing to live in the woods, and by the way, there is nothing wrong with that, and you weren’t born rich, didn’t win lottery and didn’t marry rich, you will have to assume some debt. And if you are smart, you will still be free, well sort of.

Whatever debt you might have, there are always ways to pay it off completely and become debt free. It will take time and some serious financial discipline. Depending on how much you owe and how much you make, you may have to stop going out and start eating macaroni and cheese. All depends how strongly you want to become debt free.

We understand that there are different people with different needs and aspirations. Some want to become completely debt free and others don’t mind of having debts that they can comfortably repay. And there is a separate large and growing group of folks who are practically drowning in debt.

Debt Free “not to do list”

• making minimum payments on your revolving credit lines – credit cards and store cards
• increasing credit limit only to get in more debt – wrong way to become a free person
• looking at your house as a bank or ATM machine, continuously refinancing and taking monies out – those cash out refinances will soon become your worst nightmare

Debt Free short guide - things one can reasonably do

• downsize – buy a smaller house, a cheaper car, don’t get a new car every 3-4 years
• take a second job to pay off high interest loans
• stop on going out every day, use savings to pay off credit card debt
• stop buying designer clothes or use discounters and outlets

We know we are asking you of a huge sacrifice, but buying or leasing a new car, once the old one is paid off or lease expires, is plainly stupid. Get a used one and keep it for at least 4-6 years. Just be smart and reasonable and you may be well on the way to a debt free life.

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