Are You Dying From The Debt-Related Mold in Your Life?
10 Steps to Reduce Your Debt
Living a life with excessive debt can be very stressful! I know I’ve been there. It feels like you’re in quicksand up to your chest and it’s becoming more and more difficult to breathe. Slowly but surely, you know that the sand is going to rise and soon it will totally engulf you. That’s an ugly feeling isn’t it? Stress like this takes years off of your life and makes for a miserable existence.
Reduced debt can improve your health, leading to less stress, lowered blood pressure and fewer headaches.
“In April 2014 the average US household had credit card debt over $15,000; student loan debt of over $33,000; and mortgage debt of over $150,000. As a nation, we are up to our eyeballs in debt.”- Tony Robbins, Money-Master the Game.
But not all debt is bad. There is “good” debt and “bad” debt. Mortgage debt is generally considered good debt because it is buying you an asset. Credit card debt, on the other hand, is considered bad debt because, it is not usually buying you an asset. It is just worthless debt that accumulates like mold. Once you have it, it is hard to get rid of.
Staying out of this “bad” debt is difficult because it tends to creep up on you a little bit at a time. Like mold, you don’t notice it until it’s too late and it’s all over your walls. Now it’s going to cost you to get rid of it!
How does this happen? Often times, it is because we have difficulty delaying gratification. “I must have it now!” Instead of waiting until we can truly afford it by paying cash, we simply put it on the card and we can have it now!
“Couple the inability to delay gratification with the availability of everything we want or need, and match that with the painless purchasing plan of credit cards, and it is no wonder that the average American family now carries more than $15,000 in credit card debt.”- Zig Ziglar, Better Than Good.
Larry Burkett, a brilliant financial counselor, offers a simple three-part plan for staying out of credit card debt:
- Never charge anything on a credit card that you don’t have money to pay for. In other words, use it as a charge card, not a credit card.
- Pay off your credit card debt every month.
- The first time you fail to pay off your credit card at the end of the month, put your credit cards on a cookie sheet, heat the oven to 350 degrees, and put the cards in for thirty minutes or until they are nice and runny.
Reducing bad debt is not easy, but it is very doable if you do it systematically, and you’re willing to give-up a few things in the beginning. In other words, you must be willing to delay gratification.
Marc Ostrofsky, Get Rich Click, offers an additional “10 Steps to Reduce Your Debt”:
- Make a list of all the companies you owe money to (credit cards, car loans, store credit cards, student loans, etc.)
- Add up your credit card debt and the cost of monthly payments.
- Now look at the total figure. You may be surprised at the amount. You may even be horrified. But at least you are aware, and that’s the first step toward financial freedom and peace of mind.
- Get rid of your nonessential credit cards. The fewer cards you have, the less temptation you have to spend.
- Cut the cards into pieces, then phone the card companies and inform them so that there is no chance of credit card fraud.
- Do not acquire new cards.
- Keep one card. This card is for emergency situations or travel, and it should be the card with the best rate and lowest annual fee.
- When choosing which card to keep, pay no attention to the introductory offer, as that does not last long enough to matter. Read the fine print on the monthly bill to determine which card is really the least expensive.
- Prioritize your payments. High interest and secured debts should be paid first. These include mortgage and car payments. With all debts, exceed the minimum monthly payment whenever possible. By doing so, you can reduce the debt faster and save money by avoiding the accrued interest.
- Consolidate your debts to the greatest possible extent. Transfer all of your credit card balances to the card with the lowest interest rate. Doing this may seem like a hassle, but reducing interest rates by even a fraction can save you a surprisingly large amount of money.
Being totally debt free is the goal. It may seem like an insurmountable task, but I should remind you. How do you eat an elephant?. . . Answer: One bite at a time!
The financial experts generally agree that there are two basic ways to get out and stay out of debt. First, you could cut back on your expenses and pay down debt. Or second, you could make more money and pay down your debt. Which ever way you choose get rid of the “mold” that is polluting your life!
However, if you decide that you would prefer the second option, I suggest that you look into two proven income-producing options that are simple and systematic. Elite Marketing Pro is a “university” for internet marketing. It’s an all-inclusive plug-and-play system with an excellent business community, and cutting-edge training. GotBackup is also a turn-key system with a great company and great support. They provide a product that everyone needs and has a 92% retention rate!
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Image courtesy of Stuart Miles at FreeDigitalPhotos.net
David Figueroa- Success Coach
About the Author David C Figueroa
David C Figueroa is a psychologist with over 35 years of experience teaching personal development. An awesome success coach, and internet marketer. Now retired, he has refocused his goals into helping network marketers grow their businesses online.