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Living Without Debt by Richard Mallenar http://www.dsdebt.com Consumers are straddled with an average debt load of six- thousand dollars on their credit cards. Naturally, none of us intend to remain indebted to credit card companies by continuing to charging purchases with them again and again. Dishing out cash just doesn't seem to be as entertaining or even as simple as whipping out the plastic and signing away. But the privilege comes with a price otherwise known as interest and if you ever want to be free of debt there are a few things you need to know. 1. Cut up all your cards. Don't request, accept, sign, or use plastic credit for any of your purchases. Learn to say "no" firmly to all such offers. Many credit users have ten or more cards. If you must use one for business or travel, keep it in a safe and somewhat inconvenient location so that it won~t be easy to access when you make a spontaneous purchase. 2. Eliminate any all debt balances. Beginning with the lowest balance, start paying as much as possible until that balance reads zero. Now, take whatever you were paying each month on this card that you have just paid off and add that to the minimum payment of the next lowest balance until it, too, is paid off. Apply this formula to every card you have until you are finally free of credit card debt. 3. A budget is not a bad thing. Draw up a budget that fully accounts for total income. Be sure to take money out for emergencies like fixing the car as well as some form of long-term retirement fund. Buy everything with cash after making the mortgage payment and paying bills. It is definitely more difficult to go beyond your budget at the grocery store or any place else when you don't have plastic to fall back on. Items you don't need are the enemy. If you want to buy something that costs more than $100, try giving yourself a "cooling off" period of 24 hours before actually making the purchase. Your spouse and you should support one another in adhering to the budget. The debt will disappear and the savings account will grow, giving you a great sense of accomplishment as you take control of your own fate. Make sure the children the very same self-discipline so that they, too, may know the rewards of a debt-free existence. Paying cash for the things you buy is a kind of freedom and if you adhere to these principles it won't be too long before you can start buying the things you want. |