Your Debt Threat

One of the quickest ways to get help with debt is to make changes to the way you spend your money. Because debt is a formidable habit, it is essential to understand what actions and beliefs feed excessive debt, and how to change those actions and beliefs so that they serve us and not our creditors.

For the last century there has been a culture of prosperity in the western world. This culture taught that each generation deserved better than the previous one and parents worked hard to give that lifestyle to their children. However, while admirable, it has been twisted into the debt society we now live in.

Easy credit has made it possible to mortgage future prosperity for the whimsical want of the moment. “I want it NOW” has replaced “earning a living” and “monthly payments” have replaced “cash on the barrel” transactions.

The result is a front loaded mirage of prosperity and a bankrupt retirement. So what can be done to turn around the debt culture? Here are a few starting points:

Delay Your Gratification

“I want it now” held no water in the previous century. Patience was a virtue and there was a pride of paying cash for something wanted. Easy credit tells you that you don’t need to wait… but at what cost? Plan your purchases. If you don’t have the money now, save until you do. Make a goal to save the money for any major purchase. Saving for 6 months beats paying for the rest of your life.

Power down your credit cards

Each credit card purchase you make empowers your creditors, likewise the more you put toward paying off your credit cards empowers you.

Win the battle over debt with an extra few dollars per payment and soon you will be free of the debt culture.

Live within your means

What kind of lifestyle do you want and is it worth a bankrupt retirement? The way to live paycheck to paycheck is to spend every dime you make each month. The key to savings is to spend less than you make each month. Make a goal to spend 10% less than you make and put that money in the bank. Better yet invest that money wisely and make interest work for you.

Know where your money is going

Take time to map out your debts. How much you spend each month, and when your expenses occur. Make a plan to schedule your payments to make sure that they never are late again. Examine your spending habits to root out unnecessary expenses. Once you have done this, make it a habit to be aware of future expenditures to keep you on track. The debt culture is fed by ignorance and impatience.

You can get help with debt by knowing where you money is going and the discipline to wait until you have the money before making a purchase.

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