Living Without Debt ***************************************************************************
The debt load for the average consumer hovers around $6000. No one sets out to remain in debt by continuing to use credit cards time and time again. There is a convenience and certain degree of fun that comes with using plastic to buy things that just cannot be had with cash. But, if you want to stop shelling out your hard-earned money paying the high interest associated with credit cards and become debt-free, then you will need to make some sacrifices and take action to escape the debt trap. 1. First and perhaps most importantly, chop those credit cards to pieces. Stop asking for, accepting, and using your plastic to buy things. The word "no" is very much your friend in the world of credit cards so say it anytime you are offered another. Ten or more credit cards is how many the average consumer has in their possession. You may need to use them for business or vacation but you can minimize its potential temptation by stashing away in some hard-to-access location making it more difficult to succumb to the temptation that is impulse buying. 2. Debt balances are your enemy. Pay the maximum that you can reasonably afford on your smallest balance, being certain to exceed the minimum payment amount, until it is totally paid off. Using the same payment amount, apply this to the minimum payment figure for the next highest balance until it, too, is paid off. Using this same premise, continue the process until you have all your cards paid off. 3. Learn to live on a budget. Make a monthly budget that lines up with household income. Include a short-term emergency fund for unexpected needs like a car repair, and add a long-term savings plan. Use cash for purchases beyond monthly mortgage and bills. That way, you will be inclined to spend less at the grocery store or wherever you shop than if you were dependent on credit cards. Quit purchasing things you want as opposed to those you truly need. A waiting period of a day or more is an excellent idea for anything costing more than $100. You and your significant other must work together to maintain the discipline to stay within your budget, so support one another when the other feels like straying. None of us likes the feeling of constantly owing money so as you begin paying off your credit debt and actually start accruing some savings, remember that you are taking control of your own destiny. Teach your kids not to repeat your mistakes with credit cards so that they may grow up with the discipline necessary to live a debt-free existence. There is definitely a freedom that comes with paying cash for the things you buy. If you adhere to these principles, the day when you can buy the things you want will arrive a lot sooner rather than later. Richard Mallenar is a consultant and advisor at DS Debt, Corp. Your Internet website resource about Debt. Find out more at- http://www.dsdebt.com
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