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Debt: Don't Pay Your Minimum Balance
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Almost all Americans carry credit card debt. Actually, over 40% of US families spend more than they earn. If you're like most of us, you try not to think about how much money you owe and what that debt is really costing you. If you did, you might not sleep too well. However, by not fully understanding your current financial situation you are only prolonging the problem. In order to rid yourself of unsecured debt, you need to face the uncomfortable and often painful fact: it is very possible that your current debts may take you 30 years to pay off. |
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Debt Free and Carefree
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Are you still clearing a mountain of debt amassed last Christmas or even during last year’s summer holiday?
For those of you who make financial plans, who budget and save, you can skip this article. For those who get a little carried away, who regularly spend more than they can afford, this article is for you. |
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Debt Elimination Is The Key to Financial Freedom
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If you want financial freedom, the first thing that you will need to do is to get rid of your debts. After all, as long as you owe money, you can't consider yourself to be financially free. This is due to the fact that the money you will earn in the future won't actually belong to you, as you'll have to put it toward paying off debts in the past. |
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Budget the Luxuries First!
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Strictly speaking, his advice was preceded by another Heinlein maxim as well. "Sovereign ingredient for a happy marriage: Pay cash or do without. Interest charges not only eat up a household budget; awareness of debt eats up domestic felicity." Today, that advice gets abused eight ways to Sunday, as the average household is currently carrying credit card debt to the tune of over $10,000. Assuming an interest rate of 18%, this works out to about 150 bucks a month going to the credit card company. That’s money NOT available for things like fresh flowers on your desk... new skis... upgrading to gourmet coffees and wines for daily consumption, or dinner out (including tips and babysitter). |
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