Debt Free & Wealthy is Best

Written by admin on March 29th, 2011

Time to discuss debt free solutions, but before we do let’s try and understand how and why the average household is in danger of being strangled financially because of debt. The current state of the economy plays a big part, but that only speaks of the last 4-5 years. Things were pretty bad way before the economy started to take a dive.

There are several debt free solution strategies you could adhere to, but the question isn’t simply how do I get debt free? The question should be, how do I get debt free and begin to accumulate wealth? Far to often we just think one dimensional. We can’t wait to payoff this bill or pay off that bill, so we can do what? Just start the whole process all over again by creating more debt and sorrow.

We here are a few otions to consider:

A.) Continue to make minimum or no payments at all and remain in debt for the next 30 years

B.) Credit Counseling: These programs work sometimes. However many of these places charge you a fee to negotiate your debt with your creditors. This is something that you can do on your own though.

C.) Consolidation Loan: I would never advise on this option as you are creating debt to pay debt. Although this method clearly works, but one has to be disciplined enough not to create new debt while paying off old debt.

D.) Bankruptcy: Filing chapter 13 or chapter 7 are both options, however you would be completely leaving your creditors holding the bag & drastically affecting your credit rating. [This option does clear your debt and allow a fresh start, but there are consequences attached]

E.) A Wealth Building/Debt reduction plan: Create an extra stream of residual income to payoff your current debts while building wealth as well.

There is a huge misconception that credit is the only way to get the things we want and need out of life. People are over spending and living beyond their means. I’m not saying that you shouldn’t want nice things, but you shouldn’t sell your soul to get them. ,000 in credit card debt could easily a 10-15 year responsibility if you allow it to be. I want you to think ofborrowing 0.00 but paying back 00.00 sounds crazy right? Well that’s why you need a debt free solution.

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