“I’m Underwater!” 5 Tips For Living a Debt Free Life


Debt, Debt, Debt, it’s all around us and just about everyone we know is consumed by it! The economy is such now that all our bad habits and years of careless, uncontrolled spending is coming back to bite us. However, its still possible for us to wipe out our current debt and live our lives within our means.

These quick tips should help you along your journey to debt free living.

1. Create a budget that is realistic and includes repaying your debt. To start getting control over your debt you should create a workable budget. Rather than holding you back, your budget can offer you freedom! You can set a spending plan where you only buy the things that are most important and you can also follow your spending better.

– Your budget should consider every aspect of your life style, like food, housing, utilities, savings, debt repayment, and recreation.

– You must include debt repayment as part of your budget so that you can pay it off faster. Taking control by working within a realistic budget every month you’ll begin to see your debt get smaller while your savings gets larger!

2. Stop credit card use. I know this is easier said than done but credit card use is one of the leading factors in the economic mess we’re currently in. People buying things they simply can’t afford. The next step for them is making minimum monthly payments which death to anyone’s finances!

– You’ll never get out of debt making minimum monthly payments because interest continues to build on the original balance. For example a $1000 balance can take you 22 years to pay off making only minimum monthly payments!

– Stay out of the credit card trap by paying cash for the things you buy its really not that hard if its planned right. If its an expensive item save the money before you purchase it. A little pre-planning and patients will save you tons of money.

3. Buy expensive items with cash. You don’t want monthly payments on an expensive luxury item. Truth is once we buy something expensive with a credit card we usually can’t remember why we bought it and we’re still making payments on it.

– Nothing kills the satisfaction of our new toy or vacation or puts more pressure on our budget than monthly payments. So try as hard as you can to think CASH, CASH, CASH!

4. Try to negotiate better terms with credit card companies and banks. Most of us think this is an impossible task and we have to take what they give us, but this isn’t always true!

– If your credit is good or you’ve worked hard to improve it chances are good you can get better rates on what you owe.

– We may hate to talk to people at financial institutions but you’ll be surprised at how willing they are to help you as long as they know their going to get repaid!

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