The quote from Suze Orman that “Debt is bondage” is so true. Debt not only holds you in bondage, it steals from you in the form of finance charges.
Do you find yourself avoiding answering the phone because you are tired of the bill collectors calling? I can remember being so broke that I had to spend extra money overnighting my house payment to the mortgage company. That was before the days of online bill payments. You have got it so much easier than ever before.
I have discussed debt and relayed my story about how I got into and out of nearly $100,000 of debt in earlier post Who is Responsible to Provide Basic Needs of Americans?
In today’s post, I want to help you create a plan of action and milestones. A good plan will lead you directly from where you are today to the point of complete freedom from debt. I will give you practical and actionable steps that you can follow to do what I did that got me out of debt.
Philosophy – The How and Why
Vale le Pena! Translation – It’s Worth It! Financial freedom is worth the sacrifice that it takes to get there. There will be some discomfort between where you are and where you want to be, but by enduring it you will reap the reward.Financial freedom is worth the sacrifice that it takes to get there Click To Tweet
When you are financially free, more of what you earn is yours to keep. You can buy and actually own more if you are not sharing a portion of your income with your creditors.
In the future, when you need to borrow money for big purchases like home or car, less money will go to finance charges allowing you to have nicer things.
Maybe you are in a place now where you are forfeiting too much of your hard earned income to finance charges. Perhaps you are not able to get the financing for a new car you want. Is your FICO score where you want it to be?
Pitfalls to Avoid
Setting the target unrealistically high
When you take account of how much you owe and how long it will take to get out of debt, the timetable of the goal could cause you to quit before you succeed. Read More →