Are you ready to be debt-free? Almost everyone in the red will answer with an enthusiastic “YES!” An overdue balance can make life difficult, which is why getting into the black is vital. There are plenty of ways to get over the financial hump. Some people like to consolidate their accounts and pay them off in a single transaction. Others prefer to hire money managers to take the strain and relieve the stress.
Another method is to look to successful people as mentors. After all, they’ve been there, done it, and come out the other side with the t-shirt. You decide where to go next and what to do, but there are traits to keep in mind on the journey. Here are four things debt-free men and women never do.
Debt-free people never…
Once the payment is set up between the bank and the seller, it’s easy to forget about the money. The amount stays the same anyway, right? In most cases, there won’t be any discrepancies, but there are times when rates increase and decrease. The latter isn’t a problem, yet the former is a big deal as it may add to your expenses. And you have no idea if you’re not checking your account. For example, think of a cell phone contract and add-ons, such as extra data, texts and calls. Regularly check the bill at the end of the month to make sure it’s correct.
Believe Marketing Ploys
Everyone knows that businesses use advertising to trick people into purchasing goods. The shocking thing is that it doesn’t matter because the message is so powerful. You want to buy the product and only need a slight nudge in the right direction. Don’t worry if you can’t afford it because often there’s a ninety-day offer where you don’t pay a penny. The debt-free group understands that once the trial finishes, the rate jumps, and it becomes much more costly. They either save up or use a credit card and then pay it off in full.
Invest In Myths
“Whoa, wait a minute, you’re thinking about filing for bankruptcy? Don’t you understand it will kill your finances forever? That’s a ballsy move.” Essentially, filing for bankruptcy is a serious issue, yet it won’t destroy your credit for eternity. You’ll still be able to get loans and apply for credit cards and everything else. From chapter 13 bankruptcy to 11 and 7, some pros exist, depending on the situation. For example, it wipes unsecured debts. Clever people weigh the pros against the cons and play the percentages. That’s why they’re eventually stable, and if they stick to the plan, they will become debt-free.
Lack Earning Potential
Rather than save cash, they make it also. Their primary job is the number one money-maker, yet they often moonlight and have freelance projects on the side. Yes, it takes up some of your free time, but some hobbies can even be money-spinners. Look at how blogging has monetized writing thanks to sponsors wanting to piggyback traffic.
Do you have a strategy for staying debt-free?