How You Can Have Debt Free Living

Imagine not having to pay any bills every month. Imagine that the only bills that you have to pay are related to your food and to your basic necessities, like lights and cable. Can you imagine how much less stress you’d have every month, or how much money you’d be able to save? Contrary to some beliefs, you do not have to live like a hermit in the woods in order to have a lifestyle like this. It is possible to have debt free living, if you’re willing to put a little time, and a little effort, into your lifestyle.

The Beginning

Before you can live debt free, you first need to get rid of the debts that you have. Unless you’re expecting some huge inheritance, you are likely going to have to do what the rest of us do which is to slowly pay down your debts. A debt settlement company may be able to help you to get your debts a bit easier to pay for, by helping you to lower your interest rates and to create a budget which will allow you to pay a bit extra on your credit cards every month.

This process can take awhile, so be patient, and also make sure that you’re good about making sure that you follow along with the budget that you, or your debt settlement company, has set up. After you have paid off your debts like credit cards and loans, you can then start working on bigger debts, such as your car payment and your mortgage.

For these larger debts it is a good idea to start with one first – usually the smaller one. That would most likely be your car payment. Take the money that you were using to pay off your credit cards and loans and throw that money into your car payment. This will dramatically lower the debt. For instance if you were paying $300 a month for your credit card debts, and your car payment is $400 a month, imagine how fast your vehicle would be paid off if you paid $700 a month on it? In a much shorter time than you would expect, your vehicle will be paid off.

Then you can work on your mortgage. It can be tempting to take the amount of money that you had been paying on your vehicle and to bank it or spend it, but if you truly want to live debt free you should take it and put it in your mortgage. Imagine paying an extra $700 a month on your mortgage? You could easily cut the time that you owe on your house in half, or even less!

Even if you do decide to keep your monthly mortgage, simply paying off your credit cards and your vehicle loans will allow you to have a great deal of extra money every month to put in the bank, which you can then use to pay for items you need, such as a new car, with cash, allowing you to truly live debt free.