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How to Live a Debt Free Life

By Charlotte

A lot of people are just so drowned in debts that they believe that there is no way out for them. If you happen to be among these persons, start by noting that there is a way out from this mess. You can make it out of debts even when completely drowned. You can decide to take the first step today out of debts which will change the whole of your life and permeate you to live a joyous debt free life.

So many people are highly tensed and stressed up on this issue of debts. Some have developed illnesses because of this. Thereby not being able to enjoy life the way they should. I have discussed with a man who told me that his single biggest rerate in his adult life was to finance his life choices after college with debts. The debts caused him a lot of pain and stress. He said he used part of the debt to purchase a vehicle which he no longer had, used part to purchase lots of electronics which he no longer owned, used part to purchase lots of expensive restaurant meals which he couldn’t even remember. What was impressive was that he realized his mistake, which was going into debt just to live a luxurious life for a short period because he believed that living a modern life demanded that he gets into debts.

This friend of mine failed in several ways as he squandered the money he obtained through debts on unnecessary things, those that were not important at the moment. Before he could realize, he had no more money at hand yet he was to pay off all the debts he owed. However, he was able to come out of debts and is presently living a debt free life; one that he enjoys very much and recommends others to do same as he did.

It is worth noting that coming out of debts is only half of the main battle to win. The next part to complete it has to do with staying out of future debts and still living a normal modern life. The later can be quite challenging but not impossible. That’s why we are writing to you in order to assist you go through this challenging task with noting to regret. In addition, we shall also be presenting to you the different ways on how to live mortgage free.

Before moving forth, it is worth noting that this process of freeing yourself from debts won’t truly be an easy one yet very possible. This is because it entails you live on a tight budget for months. At times it can take you years to completely free yourself from debts. It is highly tempting to feel that the pressure is over whenever you reach zero. At such points, the tendency that you return back to debts is very high if you aren’t careful enough. You may start thinking about vacations, how to move to a nicer house, organizing parties etc. And before you realize yourself, you are already back into debts. That is why we are not only going to assist you out of debts but are also going to assist you in remaining debt free while living a modern life.

Determination

Determination is the key to total debt freedom. Reaching the point where you no longer owe any debts requires lots of sacrifice and determination. You need to make up your mind and decide to move towards life when you are asked to choose between life or debt. If you successfully make up your determination, you’ll end up overcoming all the obstacles found on your way. A strong mind set is necessary to overcome challenges and difficulties. These challenges are bound to come your way when you are seeking how to live mortgage free and also how to free yourself from consumer debts.

Refuse new sources of credit

Refusing new sources of credit is important in freeing yourself from debts be it consumer debts or some other form. If you have unpaid credit cards, the first thing to do when you are moving towards total debt freedom is to say no to new credit cards. The tendency for so many people to pick up new credit cards or take up new loans on others is very high but also very bad. This way of living should be abolished by someone seeking freedom from debts. Take a firm decision of yours which has to do with refusing new sources of credit cards. In this way, you will better concentrate on paying off the present debt. It is no great deal if you continue to take new credit cards to pay off the old ones. It makes no change as there is instead a greater possibility that your debts move up to a higher level which is undesired and will only cause you more harm than good. Even if you are undergoing hard times to pay off the debts, which is normal, take things simple and don’t rush to get a new credit card. Be patient and persistent to the end. Accept all the challenges and sacrifices that you are undergoing in order to choose life or debt. These challenges and difficulties should be seen as the price that you are paying in order to free yourself from consumer debt as well as other forms of debts. If you are lucky enough to have successfully reached the level of total debt freedom, you are called to even be more cautious for ‘’old habits die hard’’.

Stop using your saving account until your debt is fully paid off

Experts often advice that a professional worker or business man should have about 3 to 6 times the equivalence of his salary in saving form. Yeah, it’s interesting but we find that this should apply only when you are already in total debt freedom. It is not advisable to save money while you are in debts. Above all, peace of mind should stand ahead. First clear your conscience and have peace by paying off all your debt. When you must have struggled until wiped your debt records, secure your future and prevent the collection of further loans and credit cards. Make it a habit that at least 25% of your salary every month is kept aside in your saving account. Without doubt, this will certainly be of great help to you in the future. 

Track all your expenditure

Whenever you decide to live a debt free life, if it happens that you are still owing any money, start by paying it off. You can schedule a plan on how to pay off all your debts and live a debt free life. Make sure that in this plan, you include the process of tracking all that you spend in order to sit back latter and analyse the expenses. If you find that you are still making unnecessary spending, put out a strategy to bring an end to this. If you are presently free from debts and want to have total debt freedom for life, it is worth tracking all your spending down to the least. It should be noted that even people without debts have limits to their finances. If you fail doing this then your chances of getting back to credit is very high. No matter the way you take to track your spending, the key point here is to start feeling the spending that you are making. Most people spend without even being conscious of what they are doing might be because they are simply using cards or spending in little amounts. But at the end when this amount is calculated they look alarming than never as if they were not the ones who used the money. Tracking will guide and help you to realize if you are overspending or you are not. With a perfect knowledge of how your money is used, you notice abnormalities and take precautions to stay away from debt.

Carefully plan your finance

In everything we do in life, a plan is very important. A plan represents the first step in any successful activity being carried out. Failing to plan for success is planning to fail. That goes same for finances. Here, we can see why people even get into debts. It is simply because they failed to better plan their finances ahead. A good example can be observed in cases where a person fails to better plan his finances ahead and at the point his vehicle fails, the first thing or option that comes at hand is to get a loan in order to purchase a new one. This is because this vehicle is highly important for them in order to move to their job sites. And in most cases, it is observed that these debts end up lasting even more than the vehicles themselves. This is not the case with a person who predicts and saves for the purchase of a new car should in case that he is using fails him. There are also several feasts all in a year such as the new year festival and Christmas periods. During these periods, several people end up getting in debts because they had not fully planned how to unfold their preparations for the different events they decide to celebrate. In order to prevent these situations that present challenges in making a better choice from life or debts, the only solution is to plan ahead of time. You may decide to pick up a part time job to fund such occasions or reduce expenditure on other things. By so doing, you will free yourself from all sudden consumer debts that can likely arise.

Increase your income

So many will appreciate to have their incomes increased but they do not really know how to go about this process. Here, you need to start by understanding that income comes as a function of your input. For this reason, start by increasing your competence by taking additional classes and being the best in all that you do. Increase the outcome of your company with your new skills. Move up to the director with confidence and discuss things out with him. Tell him about your desire to have your salary increased, and make sure to back your request with concrete points as basis for salary increase. Apart from your main job, there exist several other activities besides it that you can adopt in order to earn extra cash. Looking in to your talents, aren’t you having something else that you can offer for money. Once you are able to make surplus money at the end of the month then your chances of living total debt freedom is highly elevated.

Always keep an emergency fund beside

Life is full of unpredictable situations which we have absolutely no control over. However, we can only expect that things that we had not planned for end up occurring against our wish. A person who has planned for an unpredictable situation is always ready to face it. So there is just no way for such a person to end up in debts. Keeping aside an emergency fund is one of the unavoidable things to do for someone who wants to live total debt free. A few persons who succeeded to reach debt freedom returned to debt. Such money that is kept aside by a wise person can be accessed at any moment during an emergency situation. Just imagine that you wake up one morning and you are about to leave for your job just to realize that you vehicle needs proper maintenance, it’s something you need in order to move to your job site to make money. If you are not having ready money reserved for emergency situations, you’ll end up getting back to loans. Thus you compromise your total debt freedom.

Start a business of your own

At the beginning, it’s just normal to work for somebody else because of lack of finances or experience to get on your feet. It’s very normal and I even find that it’s the best step to take as you’ll end up being better placed to manage your own business than he who went directly and started their own business without previous working experience earned under someone. Just be very attentive to all what is going on in the business, kindly observe how the business is being managed, how it unfolds, its weaknesses and strength. While doing all these things, it is wise to keep aside money with which you plan to start your own business. The time might seem long but being focus and determined will push you to full success. Once you have acquired the necessary knowledge needed to manage your own business and also the necessary amount of money needed to start something of yours, then it’s time to stand on your feet and take control. At the beginning, you do not really need to start big, start with what you have at hand and with time and proper management, you’ll end up reaching were you want.

Simplify your life

When asked to choose either life or debt, it is wise to choose life and live it very simple with peace of mind than to choose debt and live a short moment of luxury followed with several years of crying and grinding of teeth. Always brainstorm for ways on how to reduce your expenses. Take care of all that you have and avoid trying to get what it’s not at your reach.

Be contented with what is at hand

As long as we are not contented with what we have, our chances of getting back to consumer debts and other forms of debts remain extremely high thereby compromising our total debt freedom plan. We are to learn that it is not all that we see that we must get. We should learn to deny ourselves and our children certain things which can compromise our total debt freedom. So many people go in to debts just to live luxurious lives which ruin them in a lesser time than they believed it will. At the end of the day they are left with nothing to remember of the pleasure they once had apart from the call of debts to be paid off in a nearby future. It is no doubt that when choosing from life or debt, life is what matters most and should greatly be valued. However, it should be noted that life can be compromised by debts. Any debtor will agree with me that he is disturbed physically and physiologically. And this is even worst in case he does not know how to get the money and pay off the debts. Thus everyone is called upon to show great satisfaction to what they already have and cherish it with their hearts. This will prevent them from picking loans and new credit cards in order to try a life which is not theirs. Always find joy in your family and all those surrounding you. No matter how poor you might think you are, you are more than somebody and in a better position to assist someone else. When you look at what you have with esteem, there are very low chances that you get back to loans and compromise your total debt freedom. Researches have been conducted and found that when we start appreciating what we already have, we think less of upgrading or adding. This is very important for anyone who has to choose between life or debt. Leaving a life full of debts at times seems not to be life at all. It should be noted that happiness is not equal to spending and that if we start by valuing what we have, we’ll obviously spend less than we plan.

It has been noticed that as days go by, worries over the cost of mortgage keeps on rising. This makes it very vital for any person with additional cash to take smart decisions of reducing their debt burden. We only need to be a little more persistent, cunny, and resistant in order to pay off our mortgages early. This brings us to the different ways on how to live mortgage free.

Consider making regular overpayments

In order to make overpayments, people do not really need to be in possession of flexible mortgages to be able to carry out this task. It is worth noting that there exist several lenders who are willing and will actually permeate you to overpay. In most cases, it is usually up to 10% of your mortgage a year. Although there exist several lenders who are only willing to permeate you to make regular lump sums at particular periods of the year, it is wise to be able to make regular monthly overpayments.

Carry out lump sum overpayments

One of the ways on how to live mortgage free is to gather your money and deliver a clear lump sum overpayment. In a long run, this will turn unto your advantage. Several people who have done this have attest of its effectiveness. As we all know in life, you can have much money today but tomorrow it is not the case. The whole story changes around. So if you are financially stable today, why not finalize your mortgage in this way.

Use an offset mortgage

This is another special way on how to live mortgage free. With this method, you simple set up a saving or current account with your lender in order to secure a live mortgage. The money that is deposited in this account is that which is then set against your mortgage debt in order to provide a day-to-day interest rate calculation.

Using offsets alongside their bonuses

Depending on your desire you can go as far as living a mortgage-free within 10 years as was the case with Lesley. Here you use your offsets together with bonuses to secure your mortgage for a length of time. Thus you won’t have to worry over a particular period of time about how to pay your mortgage and this will also prevent you from getting into debts.

We can all conclude at this point that it is possible for a person in debt to fully pay of his depth and maintain total debt freedom all through their life by simply following the few steps discussed above. Good luck in living your debt free life. 

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Total debt freedom, Total debt freedom, consumer debt, consumer debt, life or debt, life or debt, and how to live mortgage free, and how to live mortgage free,

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