Get Out Of Debt – Take Responsibility And Do It Yourself
Getting out of debt is a major topic of concern and debate to the majority of Americans these days. After years of developing a high sense of entitlement, many Americans are living in homes, condos and apartments that are well above their financial means. On top of a high living expense ratio, studies show that the average American household caries at least $5,000 in credit card debt. To make matters even worse, the average car payment is $400 per month.
These factors all come together to create cascading debt. A downward, futile spiral of building commitments and dwindling funds, which gets deeper and more impossible as the months go on. We have become accustomed to getting what we want, when we want it, and are constantly reminded through television and advertising that we are defined by our possessions, not our personality.
If this sounds all too familiar to you, then you are likely looking for a way to relieve your financial burdens. Let me start out by saying that debt consolidation or debt relieve firms are NOT the answer. Like every other problem, Americans are looking for an overnight fix; a pill that makes everything better with no work, no time, and no sacrifice. Let me be straightforward and tell you this: with that attitude, you will never get out of debt.
If you truly are serious about shedding your financial burdens and living a debt -free life, there are some basic concepts that, if followed, will ensure success for just about anyone. None of them are easy, and they all require you to act like and adult. The “I want it now” attitude is childish. If you want to live debt-free, it is time to grow up. A quick fix plan from a daytime television commercial will not get you out of debt, but these “core value” steps will.
– Change your lifestyle
The average American household brings in $54,000 per year. That is more than enough for a family to live on, but not if they spend $3,000 a month on housing, $400 a month on a car (sometimes two), and eat out several times a week. That does not even take into account impulse credit card purchases. If you want to get out of debt, live within your means.
– Stop borrowing money
It is largely accepted in the financial world that debt is a way of life. You will often hear people say, “You are always going to have a house payment,” or “You are always going to have a car payment.” Let me be clear: those statements could not be any more incorrect.
You will always have payments as long as you CHOOSE to have payments. If you want to live debt free and build wealth, you will have to adjust your lifestyle to fit your income. Regardless of all the fancy ways financial advisers try to explain it, you cannot borrow your way out of debt.
– Do a budget
Sit down once a month and write out your budget. Most of the people that do this feel like they have received a raise just after doing so. You will be surprised at how much of your money is going away to silly, unnecessary or unplanned purchases. Tell your money what to do instead of wondering where it has gone off to.