Saturday, February 7, 2009

Five Ways to Choose Debt Elimination and Become Debt Free

By Jonathan Lemereaux

Deep in the wallet there is going to be debt. The idea of debt is installed in children from the earliest of ages. They see television commercials promising that new car for a cheap monthly payment making the need for debt elimination real from the early years. They grow up in a home that requires a mortgage to purchase. Nearly everything around is charged on a card to a bank in order to live the lifestyle we see as comfortable. The growth of debt leads to the ever growing necessity of debt elimination and a debt free life.

The difference in owing and owning is debt. Eliminating debt and becoming debt free is at the heart of the world today thanks to the huge influx of credit programs. When a person chooses debt elimination and decides to live a debt free lifestyle, they will often experience less overall life stress, a happier persona and be able to save more money than they ever thought possible. Five tips to debt elimination and becoming debt free include:

Cash Rules - We are a society that thinks debt free means not owing the full balance on our credit cards. This is a distorted idea of debt free life. When you purchase something new, training yourself to only buy what you can pay for in cash today is the best debt free choice. Debt elimination starts by changing the ideas you have about money, not about the definition of debt free.

Credit Cards Be Gone - This is often the hardest step for people who are trying to live life in a debt free way. The credit cards they hold offer them a better lifestyle, one that is full of buying more and more things. These things need to be placed on a budget and saved for in order to choose debt elimination and live as a debt free person. Debt free does not mean charging less on your cards, it means not charging at all.

Never Pay Just the Minimum - The minimum payment on a credit card will often leave you in debt longer as opposed to creating a debt free life. The debt elimination of credit card money owed means paying off those balances. The minimum payment is not there for a debt free person, it is there for a person that does not mind making monthly payments for a long time to pay off a balance. Debt free means zero balance and that is going to take higher payments and more frequent payments and debt elimination.

No More Monthly Payments - When trying to move from debt to debt free, you must forget about how much you can afford per month and stick with what you can afford right now. Debt free means taking those monthly payments and converting them to monthly savings. Debt elimination is getting rid of that debt.

Never File Bankruptcy - Bankruptcy will hurt more than help. There are slow fixes for debt that can make anyone debt free. It just takes time and determination to remain free from debt, to choose debt elimination and to live debt free.

In our world of charge it, borrow it, loan it, debt free lifestyles are few and far between. We grow up seeing that the world costs more than we make and thus accept those monthly payments as being okay. In order to live everyday debt free, we need to learn to choose debt elimination and not debt.

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