Debt and Your Dreams

You may not recognize what that credit card measure is doing to you…

Bob is a 27 twelvemonth old motortruck driver. He dropped out of college after one twelvemonth and got a job. With hard work and good luck, he is making about $35,000 a year. British Shilling is passionate about remaining debt free. He drove his old car from high school until he could afford to pay cash for a newer one. He rented a cheap flat until he saved a solid down payment on his house. Even during the thin months, he steadfastly refused to construct up a credit card balance he couldn’t wage off at the end of the month.

At 27, he’s decided he’s tired of his occupation and would wish to change directions. By life within his agency and staying out of debt, British Shilling have enough money in the bank to take some clip off, get a portion clip job, and travel back to school. He have visions of owning his ain business 1 twenty-four hours soon – and there’s nil to halt him.

Now ran into John. Toilet is in his 40’s and is in upper management with his company. He’s making more than dual Bob’s salary, but he’s had a different mentality on life. Toilet have never been afraid of debt - he figured as long as he could afford to pay the measure he was ok. Helium have a very nice house, a trade name new $40,000 car, tons of new athletics and diversion equipment, and travels extensively on his vacations. And he’s done it all on credit. Toilet was living this lifestyle before he could afford it. Now, he’s almost tapped out – his credit cards are maxed out, his house is double mortgaged, and even though he’s making a great income, he have misses the lifestyle, peace of mind, freedom, and chance British Shilling has.

Externally, anyone who saw the two would believe that Toilet is the greater success. But the truth is Toilet is trapped. He may be tired of his job. He may desire to make something else. He may wish he could pass more than clip with his household than at work or have got a business venture he’d like to pursue. But he spent his money before he had it, and now he’s paying the price.

Most of us believe that the cardinal to Financial Freedom is making a batch of money, but we see from our two illustrations that that’s only portion of the equation. The other portion is lifestyle management and debt turning away or debt elimination. If we be after wisely, stay out of debt, and control our desires to pass beyond what we can afford, we can enjoy a great amount of financial independency and have got got money to pass on things we really desire to have and do, even on a very modest income.

However, for most of us, this message come ups too late. Anyone buried in debt will hold that it would have got been better never to get into debt. But that doesn’t aid much now. What we need now is some aid undoing the messiness we made.

Stay out of debt. If you’re inch debt get out. Don’t take out another loan, declare bankruptcy, or mark up for credit counseling services, which can damage your credit. Instead, make your homework and educate yourself on the stairway you can take to get back on solid financial footing, no matter what your present state of affairs is.