Could you imagine what it would feel like to have no payments? What if your only expenses were for heat, electric, and water?
I owe, I owe, so off to work I go…
Most of us work to fund our lives. Or do we?
According to a recent report, Experian National Score Index reveals that U.S. consumer use at least 50% of their available credit on an average of 6.6 credit cards. Fourteen percent of the U.S. has more than 10 credit cards!
Are we sure we don’t work for Visa and MasterCard? Maybe this is what Solomon meant when he said, “The borrow is the slave of the lender.”
'The borrower is the slave of the lender.' Proverbs 22:7 Share on XHow to Break Free
Breaking free from the bondage of debt is simple, but not easy.
It first requires getting a handle on your cash flow. Most people know what’s coming in, but they may not be exactly sure where it’s all going after that. That’s why the budget is Baby Step 0.
Next, stop using credit cards. Buying things that are not needed is the main reason consumers are amassing credit card debt. If you have the discipline, they are a convenient purchasing tool. But at an average 18-36%, they a lousy financing tool.
Once we can teach ourselves to sacrifice a little now for a lot of peace later, we have made the choice to never be the slave to the lender again. Dave Ramsey calls this living like no else, so later you can live like no one else.
The Debt Snowball
Use the debt snowball to eliminate debts as quickly as possible. On Thursday, I’ll explain more about the Debt Snowball and a variation known as the Debt Avalanche.