What Free From Debt Really Means

Imagine you have no debt.

C'mon ... close your eyes for a moment.

Imagine there are no bills to pay but the normal service bills.

No credit cards, no bonds, no car loan, completely free of any debt.

Do you sense the freedom from debt ... the relief?

How much money do you have to spend?

More importantly, how will you spend it?

Nobody has a hold over you ... this is what zero debt really means.

Freedom.

Having debt is not always a bad thing. Let's be honest, few people can afford to buy a car or property with the money in their savings account..

The killers are the credit cards, clothing accounts, cell phone bills and internet bills. I can carry on.

As long as you have any debt, you are a slave to the person or company you owe it to. You are in the "not having" loop. Money means freedom. Not having money means entrapment.

Point.

So how do you get from being entrapped to being debt free and start enjoying your life?

You have to increase your income and decrease your expenses. This will take some planning, tapping your creative juices and discipline.

For starters, shred the credit cards. Get rid of them. The interest rates on these cards are ridiculously high not to talk about the compound interest. (You pay interest on interest)

Set up a strict but realistic budget. Taking all expenses into account. Remember to do a daily budget for necessities like bread, milk, veggies, fruit and money for soap as well as the monthly paying the bills budget.

Buy a cheaper car and get rid of the 4x4. I know the 4x4 is a status symbol and people drive around in it to buy their groceries or to go to a party. Now is not the time to be "status conscious". If you really want to enjoy your money and get rid of debt, scale down. (You'll do the planet a favor as well.)

Planning will take you that step closer to have more money in your pocket.

Discuss the budget with your family. Everyone has to buy in, even the kids. You want to avoid the fights and unpleasantness.

Sell the extra hi-fi, TV, decoder that you have. Is it really necessary to have a TV in each room? Auctioning on Bid or Buy can be a successful venture to get rid of all the "extras" and more money in your bank account.

Be honest with yourself, so should every member of the family be.

The whole down scaling and cutting expenses should be a family decision and should evoke lively family conversations. This is an opportunity for families to stand together and support each other towards the common goal of debt free living.