Debt and Your
Dreams – How to Get Out of Debt – Don’t Declare Bankruptcy – Put Your
Spending on a Diet
July 26th 2006
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Get Out of Debt |
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You may not realize what that credit card bill is doing to you…
Bob is a 27 year old truck driver. He dropped out of college after one
year and got a job. With hard work and good luck, he is making about
$35,000 a year. Bob is passionate about remaining debt free. He drove
his old car from high school until he could afford to pay cash for a
newer one. He rented a cheap apartment until he saved a solid down
payment on his house. Even during the lean months, he steadfastly
refused to build up a credit card balance he couldn’t pay off at the end
of the month.
At 27, he’s decided he’s tired of his job and would like to change
directions. By living within his means and staying out of debt, Bob has
enough money in the bank to take some time off, get a part time job, and
go back to school. He has visions of owning his own business one day
soon – and there’s nothing to stop him.
Now meet John. John is in his 40’s and is in upper management with his
company. He’s making more than double Bob’s salary, but he’s had a
different outlook on life. John has never been afraid of debt - he
figured as long as he could afford to pay the bill he was ok. He has a
very nice house, a brand new $40,000 car, lots of new sports and
recreation equipment, and travels extensively on his vacations. And he’s
done it all on credit. John was living this lifestyle before he could
afford it. Now, he’s almost tapped out – his credit cards are maxed out,
his house is double mortgaged, and even though he’s making a great
income, he has lacks the lifestyle, peace of mind, freedom, and
opportunity Bob has.
Externally, anyone who saw the two would think that John is the greater
success. But the truth is John is trapped. He may be tired of his job.
He may want to do something else. He may wish he could spend more time
with his family than at work or have a business venture he’d like to
pursue. But he spent his money before he had it, and now he’s paying the
price.
Most of us think that the key to Financial Freedom is making a lot of
money, but we see from our two examples that that’s only part of the
equation. The other part is lifestyle management and debt avoidance or
debt elimination. If we plan wisely, stay out of debt, and control our
desires to spend beyond what we can afford, we can enjoy a great amount
of financial independence and have money to spend on things we really
want to have and do, even on a very modest income.
However, for most of us, this message comes too late. Anyone buried in
debt will agree that it would have been better never to get into debt.
But that doesn’t help much now. What we need now is some help undoing
the mess we made.
Stay out of debt. If you’re in debt get out. Don’t take out another
loan, declare bankruptcy, or sign up for credit counseling services,
which can damage your credit. Instead, do your homework and educate
yourself on the steps you can take to get back on solid financial
footing, no matter what your present situation is.
Leonard
Hopkins
Leonard
Hopkins is a 30 year old internet entrepreneur. His purpose in business
is to help people from all walks of life gain relief from the money trap
that many have fallen into. His websites are
http://www.smartmoneyonline.com and
http://www.freedomsociety.net
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