How you could reach a debt free lifestyle
By Paul Barker
Nowadays, while growing consumer debts have become a typical part of the way of life, many people dream of a time when they will be debt free but don’t know where to start. This article is full of debt free solutions to develop and maintain a debt-free lifestyle.
1. Change your thinking
You will need to change your mindset and the way you perceive spending your money. If you visit a designer store and want to purchase something, then you should go home and think about whether you really do need the items you are thinking about buying – you will need to resist impulse buying and commit to maintaining a debt free lifestyle.
2. Make a financial plan
You will need to plan your finances by reviewing your income and expenditure amounts and then looking at establishing a realistic figure you can spend each month. After you have established this you will be able to understand what amount of money you have left that you are able to go clothes shopping with and taking a trip to the movies.
3. Plastic is for emergencies
You should only use a credit card for those occasions then you have a true emergancy and if you can be sure to pay it at the end of the month. You should leave any cards you have at home as it will be a real temptation to spend if you don’t.
4. Pay your existing Debts
Pay off your existing debts. Pay more that the minimum monthly commitment, and if you have any extra cash, put it into your debts so they can be paid off more quickly.
5. Pick one credit card
When you are looking towards reducing your credit a quick way to do this is to limit the number of credit cards you own – you only need to have one or even two at the most. You should choose the ones with the most favourable interest rates.
6. Prevent impulse buying
By leaving your credit cards at home you will prevent most of the impulse buying that individuals get. Also, it you are looking to buy something that is large in value then you should talk through the decision with a family member or friend to help you make a final decision.
7. Sell unwanted things
Look around your house for the different things that you really don’t use and consider having a garage sale or selling the items on ebay to generate some extra cash.
8. Live within your means
If you want a lifestyle that is debt free lifestyle then you will need to spend no more a month than you earn. Utilizing a credit card as a tool is acceptable if you want to buy things and then pay them off, but you should not consider it to be part of your income that you can spend.
9. Set long-term goals
You need to look long-term if you want to be debt free, as debt-free means living within your means while having investments to increase your income.
If you are looking to get a debt free lifestyle then you will need to keep track of and know what your finances are, and you will also need to resist the temptation to spend more than you have. You should also ensure, as time passes, that you are reducing the amount of overall debts that you have, even if this process is very slow.
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Paul realizes after years of having numerous debts what it is like to have none. If you are thinking how can I get a debt free lifestyle then he has the answers. Also, if you are looking for where can I get help on a debt free lifestyle then his site can help you a lot.