Learn How to live a debt free life with no worries
Did you know that you be fooled? This time, anywhere. On TV. In the newspaper. The radio. In magazines. It the same message over and over again:”buy now, pay later’, “consolidating debts into a single \ easy monthly payment;, “having a secure line of \ credit ;. Or the perennial favorite, “Do not worry, it’s\ good debt;
The truth is that there is no such thing as good debt. Debt is debt consolidation. And money owed to someone, the money must be repaid at some point in the future.”\ Good Debt; is a misnomer. There’s better debt, sure, because there’s also really bad debt. But debt is never good. Not really. It’s time to get out of debt and start living a debt free life.
We live in a society full of debts. We’re encouraged to buy things on credit all the time. Why? They do not do it for the goodness of their hearts. You’re in it to make money, and their target is you.
Sure, it’s hard to live entirely without debt. To buy a home these days you almost always need some type of loan, this is true – few people can afford a house outright, especially early in their careers and families. But you don’t have to be in debt for the rest of your life. A mortgage is a debt intended to be temporary, supported by a (usually) the value of the building was purchased with it. It should be a reasonable and affordable amount that can be returned within 10 to 20 years for the purchase. And you should have some of your equity in the house right from the start. But it’s not what most people do. They get loans for 100% of the estimated value of the house. Worse, they receive single-rate mortgages that leave the principal – the amount borrowed – untouched. It ‘no wonders that these people eventually find themselves drowning in debt?
But go beyond mortgages. A debt mentality pervades our society. Once you have equity in your home, for example, banks urge you to “free” money with home equity loans and credit lines secured. Use the money to improve your life, they say, the restoration of the house, taking great vacation that you’d always wanted, or – here it comes – consolidating debt.
Your other debt? Sure. Do you think that people have only debt is mortgage debt? No, I have a lot of other debt. It’s a banker’s wet dream out there today … Credit lines. Cash advances. Automatic credit card limit increases. Pay nothing now. If you do not attention, you can build a lot of debt very quickly.
