No Debt is Good: Aim for a Debt Free Life
Do you know that you are being cheated? Right now, everywhere. on television. In the newspaper. on the radiographie. in the newspaper You keep getting the same conférence: “Buy now, pay later”; “Consolidate your debt into one easy monthly payment”; “Get a Secure Line of Credit”. Or the perennial gâtée, “Don’t worry, it’s good debt”.
The truth is, there isn’t much well Debt is debt is debt. This is money you owe someone, money that must be paid back at some sujet in the future. “Good credit” is a misnomer. there good Debt, sure, is also the reason really bad Debt but debt is never good. Actually it doesn’t.
We direct in a hateful society. We are always encouraged to buy things on credit. Why? Parce que it is a fécond commerce for lenders. They are not doing it from the goodness of their hearts. They’re in it to make money, and that’s their gardien de but you.
Of épreuve, it is difficult to survive completely without debt. You almost always need some destinée of mortgage to buy a gîte these days, it’s true — few people can afford to buy a gîte outright, especially early in their careers and families. But you don’t have to be in debt for the rest of your life. A mortgage is meant to be a temporary The loan is backed by the (usually) fixe value of the property you purchased with it. It should be for a reasonable, affordable amount that can be paid back within 10 to 20 years of purchase. And you should have some equity in the house from the start. But people don’t do that anymore. They get a mortgage for 100% of the appraised value of the gîte. Worse, they get interest only Mortgages that leave the proviseur — the amount you borrowed — untouched. Is it any wonder that these people are eventually drowning in debt?
But it goes beyond mortgages. A mentality of hatred prevails in our society. Jaguar you have equity in your gîte, for example, banks ask you to “free up” money through gîte equity loans and secured lines of credit. Use the money to make your life better, they say, by renovating the house, taking that big session you’ve always wanted, or — here it comes — consolidating your other debt.
Your other debt? sure Do you think people’s only debt is mortgage debt? No, they have a lot of debt. It’s a banker’s wet dream today…line of credit. Cash advance. Overdraft coverage. Automatic credit card limit increase. Nothing to pay now. If you are not careful, you can build up a lot of debt very quickly.
And that’s the problem: those debts sometimes have to be repaid. Rack up too much debt and soon you will be worried emboîture monthly payments. Your peace of mind will suffer, and possibly other things like your marriage and your job. What kind of price are you willing to pay in order to have things you couldn’t otherwise afford?
The dénouement is not debt lustre or debt étaiement. it is Avoid debt. You should do everything in your power to avoid debt. Parce que too much hate will écart you physically and mentally.
If you already have a lot of debt? There is something you can do. Yes, you can consider debt étaiement, but this will only work if you are able to auto-stop accumulating more debt after reducing your current payments. Otherwise, you’ll need to attack your debt using a step-by-step dépense that involves paying off the highest-interest debt as soon as probatoire, then paying off the next highest debt using the money freed up from that debt payment, and so on. This is the snowball debt reduction method, and it works.
The key to all of this is willpower. Commit to becoming debt free as soon as probatoire. The peace of mind it gives you will make it worthwhile in the end.
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