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DEBT3Being debt free is a matter of choice, Wealth is discipline, if you do not develop healthy spending habits, you may never be free from debts. For a great many people debt is a way of life but there are many that can happily live without monthly repayments and wasted interest payments. We can indeed develop a plan to stay out of debts and if we must borrow at all, it will be to leverage an opportunity or to acquire an Asset.

Good Debt Vs. Bad Debt

There is no doubt that we are a society geared towards spending now and paying later. Many people have the attitude that debt is a necessity, and in some cases this can be true. However, there is good debt and bad debt. When you borrow to finance an Asset acquisition, that’s good debt. Most times, people that get into bad debt are usually people with low Financial intelligence, while the Rich borrow to invest, the Poor merely borrow to finance their lifestyle. Good debt will be something that improves your existence such as a mortgage or Business Support loans. Anything your borrow to spend on anything that the highest value is at the purchase point, you have spent on a liability and that is not a smart way to build a debt free lifestyle.Your capacity to stay off bad debt starts with your Financial education and developing great money habits.

Develop Healthy Spending Habits

Maintaining a debt free attitude means changing the way you spend. Some people are habitual spenders and rarely plan their spending, they spend on emotion….( inMOTION). Think through your expense before they become one. Writing a list of things to buy or spend on is a great way to check excessive spending. You can then see what you plan to spend and have the time to make a decision whether to go ahead or not. Also it will help if you write down real value to you of the things that make your list, this also helps put things in their proper perspectives. It may also help to be accountable to a third party if you are a heavy spender and needs help to limit this ruinous habit, your spouse can very well play this role or find a good Mentor to assist you.

Set Your Credit Threshold

Every time you take on credit, you also take up interest payment that is associated with the credit, you may end up really making others rich through a lot of interest payments. To limit your appetite for credit facility, you may need to set a credit threshold and try to adhere to it. Try calculating the interest payment attached to any new loan request you are to submit in future and pretend that that interest is an income, you will definitely find it hard throwing away such money especially on a depreciating product or liability acquisition like cars, household appliances etc. It may sound contradictory but having no credit facilities actually means you will end up with more money. If you are debt free there will be no monthly repayments to make, no charges for late or missed payments and no interest fees to pay. The money in your bank account will be yours alone. Disciplining yourself to adhere to your set credit limit may be a smart move after all to stay debt free for as long as possible.

Have A Positive Outlook To Life

Many people will buy unneeded goods on credit simply to cheer themselves up. When the bill comes in at the end of the month this will only add to stress and the debt cycle will continue. Many people simply resign themselves to a life of debt and acquisition of “ things” as a way of filling up the emptiness they feel inside. Develop a healthy self esteem and do not look for nice and new acquisitions to validate your status nor yet appeal to the desire to belong to the Jones after all, you will pay the debt alone. Focus on your dreams and work to be financially free, that’s all the validation of success you need!.

If you are already in serious debt, you will need to develop a debt payback plan that does not cripple your capacity to continue to run your life and create more income to quickly pay off the debt. Having a  positive attitude may seem impossible to achieve, be rest assure that  debt problems can be overcome, and repaying debts consistently will alleviate the problem. It may seem that debts are with you for life but realistically it may only take a few years before you are rid of your debts if you work hard at it. It will take discipline and a strong will to avoid adding more debt, but the long-term positive aspects far outweigh the momentary pleasure of FREE spending.

Having a debt free attitude means that you have decided to take control of your financial life. It means that you are deciding exactly how and where you spend your money without giving a percentage to anyone else. While some forms of debt are always necessary such as mortgages, do well to stay away from bad debt.

You can always drop your comments below, I will be glad to read from you.

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About Emeka Nwankwo

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