Debt Free Living

Debt free living! Sounds great doesn't it? A life with no money worries and the freedom to spend your money as you wish.

Unfortunately for a lot of us paying off debt and getting out of debt is a daily occurrence and something we have to incorporate into our monthly budgets.

Unfortunately for a lot of us paying off debt and getting out of debt is a daily occurrence and something we have to incorporate into our monthly budgets.

This is where a frugal living will help and will make things a lot easier to cope with.

Lets us not be down hearted, so we have some debt, that doesn't mean that it has to rule our lives.

Instead lets work towards a debt free living and be in control of our own financial futures.

Debt: Good or Evil

Having debt in our lives is not necessarily a bad thing, after all how many of us would be able to have our own homes or cars without it.

It allows us to have things today rather than tomorrow and for very expensive but very necessary items it is probably the only way we would ever be able to own them.

So having some debt is not a bad thing, the trick is to make sure that the debt we do have is the best value for our circumstances and that we are not paying off more than we should be.

It is also important to think of debt as a temporary state and not one that will dominate our whole lives and to do this we should only be getting into debt when we have no other options.

How serious is your debt?

Knowing how much of a serious issue debt is for you personally is vital to taking charge of your financial problems and the first steps towards debt free living. So ask yourself:

  • Do I have any savings?
  • Am I at the maximum limit on my credit cards?
  • Can I pay all my bills on time every month or do I incur late penalty fees?
  • Do I borrow money to pay off other debts?

If this sounds like you then you have a debt problem and if something is not done soon could turn into a serious debt problem. Time to take control and put your frugal living plan into action. and work towards a debt free living.

Take the steps to a debt free living

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Step 1. Stop making your debts worse. If you continue to spend more than you earn and keep adding to your debt bills, you will never get out of the debt trap.

SO first things first, CUT UP YOUR CREDIT CARDS. If you can't use them, you can't add to the debt.

Step 2. Make a budget. Sit down with all your facts and figures and work out a serious monthly budget and project it into the future until your debts are paid off.

By setting a visible goal date of when you will be debt free, you will make the journey a lot easier.

Step 3. Be Frugal. That's what this whole web site is all about. Change the way you think about money and your spending habits and take a fresh look at the way you live your life.

Soon like me, you will realise just how much money you have been wasting and that by living a frugal lifestyle you will discover how debt free living is a real possibility. It's a great feeling.

Step 4. Organise your debt. Look at in detail what each of your debtscost you and see if you can move your debt to a cheaper interest rate. Consolidating credit card debt can be a good option. Instead of trying to pay amounts off of different cards every month, lump the debt onto one card (preferably one with an interest free) period and pay off one amount each month.

It is much easier to manage and you will have a chance to pay off all the debt at a lower interest rate. However you should organise the consolidating yourself to ensure that you get the best deal.

Step 5. Creditors. If you have other debts that you are finding difficult to pay off each month, the best option is to pick up the phone and ask them if it is possible to reduce the monthly payments.

They will usually be happy with this as it will extend the debt period and they will earn more interest, which doesn't sound good but is better than being taken to court over non-payment.

If your creditor will not do this for you though, you should contact a credit-counselling agency who are expert at talking to creditors on your behalf and who may be able to sort out the problem for you.

The best place to look for these agencies are on the internet, if you live in the US then start your search by visiting the National Foundation For Credit Counselling.

Step 6. Savings. If you do have any savings, use them to pay off debt. In the long run you will be saving yourself hundreds if not thousands. Remember debt interest rates are much higher than savings interest rates.

More Advice on Getting Out Of Debt

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