How to live a debt free life

We’ll show you how to live a debt free life. The different financial challenges that are continuously popping up in our society today bring need for us to choose between life or debt. Without doubt, everyone will love to choose life and enjoy total debt freedom. This is something very possible to achieve in life; you can live a debt free life. However, this is hardly the case with the continuous arise of financial issues here and there. Thus, learning how to successfully manage your financial needs and stay away from debts is something to be taken serious by everyone.

I know people who were in the deepest depths of debt and successfully left those horrible places and are enjoying total debt freedom today. Thus, for those who are greatly in depth, there is a way out. You are not the only one in this condition, about 1/3 of the American population is in this same condition too. Thus, you should not worry much, simply unfold our writings to the end and you’ll get equipped with the necessary ways and strategies to put an end to your debt life and start enjoying the beauties of life.

And for those who are already debt free, they should continue in this same light. It should be noted that maintaining a debt free life is not that easy and you can likely be tempted to get into debts due to the financial challenges that keep on coming on your way. Thus, knowing how to maintain a debt free life is something that you ought to learn and master. No need to worry about this because we shall take you through the process of maintaining a debt free life as you continuously unfold our writing. In addition, even if you are debt free, it is still wise to know how to get yourself out of a debt pit should in case it ever comes your way.

How to live a debt free life

We all know that living a life of debt affects you on almost all the other aspects of life. You will always be mentally worried, you will hardly be approved for a mortgage, neither will you reflect confidence to all those surrounding you.

Nevertheless, having to move out of a deep debt pit and maintaining a stage of total debt freedom is not the easiest thing to do on Earth. This process comes along with its own challenges which you will have to face and overcome if you are serious about choosing life between life or debt. This is because you might need to make a lot of sacrifices and efforts in order to accomplish this. In the same light, you should not worry much because the process is only challenging but not impossible. Many people who had cases more than yours have succeeded and so you can do same. I have had people with very bad credit records who made up their minds and took off for their total debt freedom and today they are not far from those who have always maintained good credit records. All you need to achieve this is determination, just step out and take the first step and you are gone.

How to live a debt free life

A brief presentation of the different types of debts

For you to live a total debt free life or move out of debt pits, you’ll need to first understand the different types of debts. After which, we shall deal with each. Knowing this will alarm your understanding about the risks involved in each and its cost value. The major difference to pick about debts is the distinction between secured and unsecured debts. Secured debts which are generally advised to go in for by those who must, often require a collateral before the loan is granted. Such debts come with a lower interest rate and include home mortgages and auto loans. This is so because the lender can claim the collateral in the case where you fail to pay him/her in order to sale and make up for their money.

And I’ll advice this type for any person who is so desperate about getting a loan since its interest rate won’t add another charge on you. On the other hand, we have unsecured loans which are those that have the highest interest rates due to their risky nature. This is because the lender runs a risk of having difficulties when it comes to collecting their money. Examples of such are pay day loans, student loans, and credit cards. If you are into such a debt, you’ll be running the risk of having them rapidly increasing as each day goes by thereby making it difficult for you to pay them off.

Now let’s get into our main subject matter which is how to move out of deep debt pits and live a total debt freedom life.

Ways on how to live a debt free life

Live beneath your earnings  

Living beneath your earnings is nothing strange to more than 60% of the millionaires in the world. If you are serious about choosing life between life or debt and later moving to financial freedom, you must take this point into consideration. The main reason why people get into debts at the first place is because many are trying to live a life above what their earnings can support. You might possibly ask what if you live a life equal to your earnings? This is a pretty nice question, but it does not make sense to work each day what you will fully consume for that day.

By so doing, you’ll hardly have money reserved for unplanned events or urgent cases which might arise in the future and require immediate cash like sickness. When such arrive to people who are living above and equal to what they earn, they’ll be left only with one option which will be to further deepen themselves into debts. This therefore calls for the attention of anyone who wants to have nothing doing with the credit calculator to start living below what they earn. When we talk about living below what you earn, we mean that you should always see on to it that what you spend for a month is never equal to what you earned for that month rather it should be far less what you earned.

In this light, you will be able to save enough money which will meet several of your future needs among which are: meeting emergency needs, investing in to new businesses and growing your wealth. However, the contrary of all these things are likely to be observed through the actions of most ignorant folks who believe that the credit card is there for emergency funds and by so doing, they keep on increasing the load of their debts. Whatever the case, they’ll have only themselves to blame while they cry and grind their teeth in the future when payment agencies start running behind them.

Save for goals

Anyone who is serious about successfully managing their cash flow plan in order to stay away from credit calculators will always plan every financial aspect in their life ahead of time. That is, any major spending source that comes in their mind will be planned as a goal to realize. Such people do not only fix goals, but they also design a path that will lead them to the achievement of these goals. These could be plans to purchase a yacht, a vehicle, a new home, or sending your children to school. If you happen to develop such an idea in your mind and want to realize it immediately, you will be running the risk of getting into debts or increasing your debt level by using a credit card.

The best way to go about such is to set it as a long-term goal and you develop a serious monthly saving plan in order to reach the amount needed. Here, you can make a sacrifice of choosing to spend less during the month while saving more for the realization of your goals. In addition, I’ve seen so many people ruined because of car loans. You ought to be wise in realizing that when you take a car loan, you will likely end up paying if not twice the price of the car, you will be paying an amount which is by far more than that which you would have purchased the car with cash.

Any person who wants to stay away from credit calculators and a debt life should learn to save physical cash for the purchase of their vehicle. It is very easy to purchase your vehicle with a car loan but when it’s time to reimburse, you will feel highly frustrated and realize that it was not easy as you thought. This goes same for purchasing your house. Many people turn to pay much due to interest when dealing with mortgage. A good number of people have successfully purchased their houses through physical cash, and you can also do same. All you need to do is set that as a goal and start saving for it.

Choose PayPal online over other payment methods

 Shopping online might sometimes be very exciting thereby boosting you to purchase things which you would have resisted in the physical world. And because of this, so many people have over used credit cards for online purchases that they are presently swimming in debts with little or no hope to come out. In other to overcome this, I will advise that people preferably use PayPal when shopping online than their credit cards. This is because with PayPal, you can only purchase when you have the money in your account. In this way, you gain a better consciousness about how you are spending online. This is not the case with a credit card since you can purchase even when it is empty.

Developing a cash flow plan to get out of a deep debt pit

Just as we previously mentioned, you are not alone in the debt pit, about 1/3 of Americans are with you. But does this mean that you should remain and feel comfortable in the pit? Of course, no, we are simply encouraging you to make up your mind today and start living a life style that will help you stay away from credit calculators and choose life when asked to choose from life or debt in a nearby future. Now, if you have made up your mind to live a debt free life, follow the steps below:

Pay off all your credit cards

One of the greatest mistakes that I often find a lot of folks doing is that of going in for new credit cards when they know well that they are already in great debts. In order to start your journey of recovering from debts, you must put an end to getting new credit cards and start saving to pay those that you’ve already used. In order to completely pay them off, start with that having the greatest balance. In doing this, make sure that you start making purchases with physical cash and not with credit cards.

This might be challenging but if you are determined, you’ll end up making it. If you desire to accelerate the payment process, start spending very little of what you earn while saving much. You can also deny yourself most of the pleasurable things you use to like and spend on. Make sure that you make a monthly budget which will help you remain on the path. However, you should remain flexible to urgent situations when they arise.

Maintain the debt free life

It is very easy to successfully leave debts and out of excitement, you find yourself back in the same situation. I had a friend who was so excited because he had used a nice cash flow plan to leave debts that he organized a party with his friends just to realize the next day that he made purchases with his credit card for the party. Thus, when you leave debts, set up additional steps which will prevent you from getting back to your initial situation while maintaining you at a successful level.

How to live mortgage free

Mortgage loans to purchase houses can take roughly 50 years in some cases to be paid off. Thus, the person concerned might likely live their whole life working to pay off a past transaction. Of course, this is very painful and it’s not something I’ll advice anyone to go for. Why not make it a goal of purchasing a house in the future and start saving for it today. Invest your money in to different businesses and as it multiplies, you will be able to purchase your own house with ready cash.

So many people have successfully done this, and you can do likewise. There are several investment opportunities for you in the world. You can check on my article entitled “How to invest in bitcoins and become a millionaire”. You can also check that entitled “How to invest and grow your wealth” in order to master how business investments go about. They’ll obviously help bring elements of answers on how to live mortgage free by gaining wealth and making the right decisions.

We hereby come to the end of our writing on how to live a debt free life. Good luck in moving from debt pits to total debt freedom and living happily. We shall be welcoming all your comments. Remember to share with your friends if you found it helpful.