Could you answer it with any kind of precision today?
I wanted to talk about how you can get out of debt.
About what it takes to end that slavery.
My assumption is that you want to be free of the chains and the burden of carrying debt.
However, that’s a big assumption because debt is normal and the numbers suggest that for the average American, that’s ok.
Just take a look.
The total household debt is $11.65T (as of Q1 2014):
- Student Loan debt is at: $1.11T
- Auto Loan debt is at: $875B
- Credit Card debt is at $659B
- Mortgage and Home Equity Debt stands at $8.7T
I can also give you the reasons of why it is a good idea to live free of any debt.
What I cannot give you is the desire and the passion to get out of debt. That has to come from you.
In order to get out of debt, something has to change in your spirit, in your heart.
You will get out of debt only when you:
1 Admit that using debt will not bring you prosperity
You basically have to stop believing the lie that debt is a tool to help you win with money.
Just look at the high levels of credit card debt, car loan debt, and student loan debt.
Ask any of those people to see if they are prospering with their finances.
2. Get sick of paying interest
Do the math exercise on any of the debt items you are carrying today.
See how long is going to take to pay it off by just making the minimum payments each month.
Then, compute how much that item you bought on credit, will cost you in the long run.
Just do the math. It should scare you and/or make you mad.
3. Get tired of carrying the debt burden
There has to be a moment when you say: “No more! I am not living this way! I have had it!!!!”
Until that happens you will be happy to go along and you will continue to rationalize your debt.
You will listen to the conventional wisdom that says debt is ok and that credit can help you.
When will you decide to become debt free? What are you waiting for? What will it take?
When you are ready to change your life and win with money, I can help.
“The rich rules over the poor, and the borrower is the slave of the lender.”
Proverbs 22:7 (ESV)
This post is also available in: Spanish