Debt Freedom: What Is It And How Do You Achieve Debt Freedom?
Debt Freedom – A Simple Definition
Debt Freedom
When you think of debt freedom, what comes into your mind? Do you see yourself resting peacefully knowing that you don’t owe anyone anything? Does your mental picture show you sitting at your desk or table writing out checks to pay all your bills as they come due, because you know that you have plenty of money to pay them? What exactly is debt freedom and what is it for you?
Debt Freedom Is Not The Same For Everyone
No matter who you are some picture comes into your mind when you think of debt freedom and debt free living. You have some internal idea about what you want when you think of debt freedom.
So the plain fact is that debt freedom is really not the same for everyone. But in order to reach the state of debt free living and debt freedom, you need to have some definition in mind. You can’t achieve anything unless you know what it is that you want to achieve.
So let’s start with a simple definition of debt freedom. This definition fits most people.
Debt Freedom is a condition where you are not controlled by debt.
In this condition you do not feel oppressed or burdened by debt. You may actually owe money to some people or businesses. But you are not worried about it, because you know that no matter what you can cover all your expenses and meet all your obligations.
Debt Freedom Is Not A Goal But A State Of Mind
When you think of debt freedom using the above definition, then you are not achieving a goal which is a one time event. You are in a state of mind where you are free from worry. This state of mind can occur even when you have many credit cards all with a running balance. It can occur when you have no credit card debt at all. It really doesn’t matter.
The important thing to keep in mind is that the debt freedom state of mind is how you feel about debt. If debt is not keeping you awake at night and not causing you to develop stomach ulcers or giving you headaches, then you probably are already experiencing debt freedom.
On the other hand, if you feel like you have a hundred pound weight pressing down on your head all day long giving you a headache, then debt is a problem and you aren’t in the debt freedom state of mind.
The Fastest Way To Debt Freedom
When you feel like you have too much debt and want to get rid of debt, what is the fastest way to get to experience debt freedom?
Well…
There are many ways to get rid of debt. Here are just a few.
- Focus on the highest interest rate
Pay the minimum amount on all your credit cards except the one with the highest interest rate. Pay as much as you can over the minimum amount each month until the card is paid off. Meanwhile don’t use that credit card at all for anything. If you can afford to pay double the minimum each month do that. Then do the same with the next highest interest rate card.
- Get your interest rate reduced
Call your credit card company and ask to have your interest rate reduced. You might be surprised at how easy it is to have this done. It may take talking to a supervisor to do it. But it can be done. That will reduce the amount added to your balance each month and make it easier to pay off. (Some debt services provide scripts of what to say when you call that are highly effective.)
- Offer a settlement
Call your credit card company and make an offer to pay off the balance for a reduced amount. In many cases, credit card companies are willing to take less than the amount you owe when they think that you may be filing bankruptcy. That’s because in most cases the credit card company will get nothing at all in bankruptcy. With this option you will be closing out that credit card account. This is usually called debt settlement.
- Consolidate your debts
Look for a loan with an interest rate lower than the average interest rate of all your debts. Then use that loan to pay off the other debts and make one payment to your new loan. That reduces the payments you make and also the interest you would be paying on all the other debts. This is usually called debt consolidation.
Change Your State Of Mind To Reach Debt Freedom
The absolutely fastest way to achieve debt freedom is to change the way you think about debt. This may be easier said than done. But when you change the way you think about your debt, you can change the way you feel about your debt. That will allow you to reach debt freedom even when you still have mountains of credit card debt and other debts.
A Way To Change Your Mind About Debt
When you think about all your debts, think about all the things you have already gotten from the use of the credit cards and the debts you have from other vendors. These companies have allowed you to have all the great times and wonderful things you have without paying for them first. You are enjoying these things and your lifestyle right now instead of later.
So when you have to make those monthly payments, think good thoughts, maybe say a blessing to your creditors, or if you are religious say a little prayer in thanks for them. Then make your payments with joy. Keep in mind the thought that each payment reduces the debts you owe.
If you are willing to do this on a regular basis you might be surprised at how fast you can actually pay off those debts and become free from the burden of excessive debt. In the mean time you’ll have entered into the world of debt freedom and feel much better about yourself and those around you.
