prosperityseeker

Yesterday, I was chatting with a buddy who recommended that I stop trying to pay off my credit card debt this month so that I could have more money to spend on the holidays. I thought that was ludicrous advice and strongly told her that she needed to buckle down and grow up. I told her that I was responsible for that debt and that I had to fess up and pay those creditors off. I told her that I would be cutting back on the holidays this year.

We then got into a heated discussion about the importance of giving nice gifts, reducing debt and a bunch of other stuff that I can’t remember now.  In the end, I got absolutely no where with her. Right now, she is happily shopping buying extravagant gifts on credit that she can’t afford while those bill collectors are “blowing up” her home phone threatening to take her to collections. And I am,  well here, writing this article and trying to keep you guys from doing the same thing. That said, today, we will discuss how to avoid bad debt help. Let’s begin.

1. Understand the truth about debt. Like I’ve been saying over and over again, debt is bad news. It doesn’t matter if you owe for student loans, a house or a car. People who are in debt are working for others. They are paying for stuff in the past and are not creating financial freedom or peace for themselves. Debt robs us of our money and our dreams and no amount of debt is worth it. None. Therefore, you need to do everything in your power to squash debt and get it out of your life for good.

2. Use cash to pay for your purchases. Many people argue that its dangerous to carry cash but I beg to differ. You are no more likely to get robbed carrying cash than you are to be a victim of identity fraud. Therefore, carrying around money and paying for it with cash, isn’t dumb, it is a smart move. Not only will cash force you to think about your purchases but it will keep you on target.

3. Get smart about your money. The average person doesn’t know a bit about finances and doesn’t care to learn. However, those that actually take the time to learn about money and how it works are the ones that persevere in good and bad financial times. They are able to spot the goofballs from those people who really have it going on.

4. Don’t care what anyone thinks. You’ll meet adversity from lots of people who don’t want you to live below your means. However, if you realist that you are doing the best thing for you and your family, it really won’t matter what those goofballs think because you have a different mindset altogether and are on the right path to financial freedom.

5. Do what you have to do to clean up the financial mess. Do what you have to do to get where you want to be. That might mean cutting back, spending less money or even getting a part time job. However, if you are committed, you will succeed.

You can avoid bad debt. Just make sure that you understand the truth about debt, use cash to pay for your purchases, get smart about your money, don’t care what others think and do what you have to do to clean up the mess you made. 

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