Nowadays, it seems most of us are striving to be debt free. However, in today’s world, there are many things that will keep us from being debt free. For example, to get a tertiary education, you’ll need a study loan to see you through college. If it is that time, to settle down with your significant other, you’ll probably go for that home loan, and to afford those occasional luxuries, most of us turn to our credit cards.
Unless you are rich, chances are that you will be in debt at some point in your life. The question is how do we free ourselves from it? How do we escape from this vicious cycle of debts that often plagues us for the better part of younger lives? Well, the first step of getting into the right track to becoming debt free is to recognize the things that will keep us away, from achieving this financial status.
1. Lavish Lifestyle
To be debt free, it is of utmost importance that we live within our means. Living lavishly and spending irresponsibly is a sure thing that will keep us away from living a debt free life. When in debt, it is probably best that you make changes in your life at least until you finished paying off the debt. It may be, a bit of an inconvenience at first, but it is also the only way to avoid getting into more debts. Sure, you will need to cut back on some socializing and refrain from buying those latest i-gadgets and stuff like that. But think of it this way, in time you will be able to afford it, once you are debt free and have your own savings.
The thing about interest is that if you don’t pay it off on time, you will end up paying more than what you should be paying for in the first place. Keeping that in mind, always try to pay off your credit card bills, at the end of every month. If met with unforeseen circumstances and you just can’t find the means to pay it, seek help from those close to you. It is easier to do so, before things become worse. Do not underestimate what a little interest can do to your financial wellness. Give a hard look at it before it comes hard on you.
3. Lack of Planning/Commitment
The lack of planning or the absence of a repayment plan can also keep us from being debt free. Some people think that they can just cruise through a debt. Well, if you think like that, chances are, you’ll be heading the wrong way. Repaying long term debts need commitment and planning. It would be wise to draft out a repayment plan and stick to it. This way, you will have a goal and at the end of a time frame, you’ll be debt free. With today’s bombardment of advertisements, tech savvy culture and the influence of celebrity lifestyle, it is easy to get side track. So a debt repayment plan, reminds us to make adjustment on our spending so that we will be able to meet with those debt payment on time.
4. Lack of Financial Knowledge
Lack of understanding and insight about the financial world might also keep us from being debt free. As mentioned earlier, today’s world requires people to deal with many financial issues whether they like it or not. We all just can’t hide from it anymore. While having a reasonable financial insight can often rescue us from getting into troubling debts, a shallow financial knowledge can always lead us into one. People often make poor financial decisions and regret them, but by the time you look back, it would have been too late.
There are probably many other things that will keep us from being debt free. The best ways have already been made known to you here. The rest is just up to you. Remember, that it is always better to live your life without debts. Getting what you want but ending up with a life of debts, is just not worth the while. It is so much better to live a life without worries. Peace of mind is what we should be striving for.