Eliminating Debt
_If you can eliminate your debt you are already on the track to financial freedom. You live today for the choices you made yesterday and unfortunately your financial choices can affect you well into the future if you are not smart enough to rid any debt you may have. Getting rid of any debt is one of the best investments any person can make.
Poor financial choices will prevent you from living the life that you want and are entitled to. The average middle class family does not have the ability to live the way that they want because they are suffering from the poor financial decisions they have made in the past. Most people spend about 65% of their annual income servicing debt.
You have to remember that you can not fund lifestyles with debt and if you do you are making a very poor financial choice. If you want to know what the true cost of your debt is you really have to understand what the effects of compound interest have upon you. Compound interest is a like a giant snowball. The longer it takes for you to pay off your debt the larger the snowball gets.
Your level of debt keeps accruing making it even harder to pay for it. The level of interest you pay on any debt is always larger than any interest you can expect to make from an investment so you really need to consider whether it is worth going into debt before you take the plunge. Look into the future and see what the possible ramifications will be on you and your family.
You need a rapid debt reduction plan if you are to get anywhere. The only ways of reducing debt are to increase your monthly cash flow and to inject a sum of money into your debt to reduce it. To increase your cash flow you need to jot down where you are spending your money and then identify areas that you can cut back on.
When you do this you will have greater access to cash flow which was previously wasted. Another good way to increase your cash flow is to consolidate all of your loans. After you have done this take a look at how much money you are saving and then bring the added money all together and inject it straight into your current debts so that the debt is knocked down as quickly as possible.
Pay more than the required level of repayments as this will work towards reducing the compound interest you would otherwise be paying.
Poor financial choices will prevent you from living the life that you want and are entitled to. The average middle class family does not have the ability to live the way that they want because they are suffering from the poor financial decisions they have made in the past. Most people spend about 65% of their annual income servicing debt.
You have to remember that you can not fund lifestyles with debt and if you do you are making a very poor financial choice. If you want to know what the true cost of your debt is you really have to understand what the effects of compound interest have upon you. Compound interest is a like a giant snowball. The longer it takes for you to pay off your debt the larger the snowball gets.
Your level of debt keeps accruing making it even harder to pay for it. The level of interest you pay on any debt is always larger than any interest you can expect to make from an investment so you really need to consider whether it is worth going into debt before you take the plunge. Look into the future and see what the possible ramifications will be on you and your family.
You need a rapid debt reduction plan if you are to get anywhere. The only ways of reducing debt are to increase your monthly cash flow and to inject a sum of money into your debt to reduce it. To increase your cash flow you need to jot down where you are spending your money and then identify areas that you can cut back on.
When you do this you will have greater access to cash flow which was previously wasted. Another good way to increase your cash flow is to consolidate all of your loans. After you have done this take a look at how much money you are saving and then bring the added money all together and inject it straight into your current debts so that the debt is knocked down as quickly as possible.
Pay more than the required level of repayments as this will work towards reducing the compound interest you would otherwise be paying.