Debt Free?
What do you consider “debt free?” Does being debt free include having no house payment, no car payment, no student loan, and no credit cards? Or are we just talking about the miscellaneous debts like credit cards, medical bills, personal loans, and collections? It’s all debt, but some debts cost us much more than others.
Many people believe that in order to become debt free you must close or stop using your credit cards. While that may certainly help you, it is only a part of the answer. To become debt free what we need to do is have a plan for making, saving and spending money.
Visit the American Financial Solutions’ Learning Center to find tips, classes, and calculators that will help you create your plan for becoming debt free. You may also call a counselor for help with this process. Visit http://www.myfinancialgoals.org/.
Posted by: Becky House on April 21st, 2008 under Financial literacy.
Tags: debt free, spending plan
Comments
Comment from Anonymous
Time April 23, 2008 at 2:37 pm
I am not anti-debt as long as it serves a purpose other than buying the newest and greatest. I also know you have to be very careful.
I know people who tried to start businesses on credit card debt and when the businesses failed they had debt at 20%+. It can be destructive.
Comment from Anonymous
Time April 23, 2008 at 2:42 pm
I agree. I know of a case where a person built their house and put everything on the creit cards. This was done because he could not get a building loan. Later he had a loss of income and fell behind. I believe he did consolidation and ended up paying the debt back. Isn’s that something? I sometimes think about it and title it the “credit card house”.
Comment from Anonymous
Time April 24, 2008 at 5:20 pm
A credit card house….that’s seems exceedingly risky, if not altogether foolhardy. I think of my father’s generation, -he was just a young lad as our country was recovering from The Great Depression- and what they would think of that. I’m sure the very mention of it would send my father into mad panic. Ahhhh, how times have changed…..it makes me wonder where we are headed in this brave new world.
Comment from amanda
Time June 4, 2010 at 9:18 am
I agree,There is nothing called a free lunch in this world.Financially understanding our life style is much more important. and the credit should be according to that.
Comment from patriciadee
Time July 6, 2010 at 3:19 am
I agree. I know of a case where a person built their house and put everything on the creit cards. This was done because he could not get a building loan. Later he had a loss of income and fell behind. I believe he did consolidation and ended up paying the debt back. Isn’s that something? I sometimes think about it and title it the “credit card house”
Many people believe that in order to become debt free you must close or stop using your credit cards. While that may certainly help you, it is only a part of the answer. To become debt
[url="http://creditcardtips.org.uk"]Credit Card Tips [url]
patriciadee
Comment from Anonymous
Time April 23, 2008 at 2:36 pm
Debt free. That is music to my ears. It seems to me that if you have credit card debt or loans your working to pay them off and putting life on hold because you can not afford to go and have fun.