Why do some people get rid of their debts?
Let’s go further with the question ..
Why do some people get rid of their debts and others do not ? While many factors may be part of this financial game, one of the most likely reasons is that families who have created new financial habits, spend less, and save more.
For those who can not afford to pay their debts, they may spend more than their purchasing power and, despite having a high or balanced income by the country’s standards, do not relinquish their status and do not want to be put under control because it would change their consumption habits.
Even living with debt and a lot of financial stress at home, they do not change. This is a difficult and stressful way of living.
Debt free and stress-free
People who overcome this kind of stress realized that they needed to deal with money differently and make some lifestyle changes to live quieter versus income versus debt.
When we make these necessary adjustments, we begin to establish certain characteristics that are super important when it comes to becoming debt free and staying with finances balanced and under control .
Personal finance is 80% action and behavior and 20% spreadsheet and math.
Below we list some of the most common behaviors of people who are becoming debt free :
What is it like to live a life without debt?
They are against the culture of ostentation : people freed from debt have realized that debt is not a tool of consumption. Society keeps saying ” you have to have a credit card to survive “, ” you have to make a loan to buy a car ” and ” you always have to make a loan to get what you want .”
The truth is that everyone who is living without having debt is not deceived by these rules that the credit market insists on putting in the minds of people. Credit cards may be needed yes, but for the control of your daily expenses, not to keep your finances and daily lives.
Cars can be bought with money, not just financing. People without debt, treat this type of behavior as the leftovers we forget inside the refrigerator. Be it due or a piece of last night’s party cake, they always get rid of it – throwing it away!
– Having debt is normal, but it is not essential!
Buy with self-control and discipline
When it comes to making debts, one must act like adults – adults make plans and go on. One should not get debts made children – children do what they like.
Someone who really wants to be debt free needs the willpower to go through the shoes section, the electronic utility hall or cell phones without making a purchase even on impulse.
It is important not to be influenced to buy something simply because they are for sale with promotion on that day. A purchase needs sufficient self-control to know that it will not erase your emotional problems or make them feel better.
Why have discipline? To know not to buy these things unless they can pay in cash or because it really is needed. The ideal is to be willing to wait, work and save to save on interest and avoid incurring debt.
Know what to do with your own money
A person who believes in the cost of their money and in their financial control plan does not care what others think of them. They are either driving a semi-new or used car, because they will not have long debts and installment payments.
They do not need to take an expensive vacation just to post dozens of glamorous photos on social media (Instagram, Facebook ). They really look more at price tags and product quality than the brands of the products. It’s because? Because they gave up trying to be better than they are.
And guess what? This kind of steady behavior frees up more money to wipe out your debts.
Who becomes indebted for indiscipline, stays with each unpaid debt more stressed, their confidence decreases and lives by leaps and bounds.
Be organized and disciplined with finances
It’s not wrong to have debts , right? But living for the sake of debt is wrong! So for anyone who wants to be debt free, the first step is to have a goal. People who have managed to perform the feat of paying off all their debts have always kept the goal first.
They set specific, measurable, achievable, relevant, and date-to-achieve goals – without this open goal. They determine what they want to do and map out their strategy so that the plan to improve their finances by eliminating the debts would happen.
Do not be consumerists or materialists
Someone who is materialistic places too much emphasis on “things, objects, and products.” They borrow money and should even their eyes face to pay for their vacations, extended holidays, their year SUV and retirement home and so many others.
The person who is determined to get out of debt knows that money does not buy happiness , so they do not fall into the trap of wanting the most things they can get as a IphoneX of $ 6,000 in 36 installments earning $ 1,500 a month salary. They are content with what they have and do not want to buy their happiness with loan or financing.
Be willing to give up making sacrifices
Eat out, go to the movies every week and have the premium cable TV package – these are the kinds of things a person can have to avoid while becoming debt free.
Keep in mind that there will be a need for temporary cuts in costs and expenses in the budget to save money and balance finances.
Once the debt is over, there may be more room in the budget to celebrate commemorative dates, dinner out, and movie watching anytime.
What are the main steps to get rid of debt
- Understand that you have liabilities on debts .
- Know exactly what money comes in and what comes out .
- Create a financial budget with categories.
- Determine which goals to focus on first.
- Start eliminating unnecessary expenses .
- Forget that credit card exist.
- Do not use without a need, overdraft.
- Negotiate or renegotiate debt with creditors.
- Save money to form an emergency reserve.
- Know how to use and control the use of money efficiently.
Do you want to be debt free? You can..
When you look more closely at your debts and begin to see that it is something that may prevent you from proceeding or coming back – it is time to do something about it.
Once you understand your debt, you have to be patient, make sacrifices, and find confidence in your ability to pay everything you owe in full.
The truth is that the anguish that debt imposes, does not allow the debtor to see before or realize, with a simple efficient plan, he will be taking advantage of the debt free life faster than he expects!