Debt Views

Not surprisingly, the finest moments in our lives happen alone, usually when we come to a realization or some sort of conclusion. This type of “AHA” moment is rare but when it comes, there is a subtle but permanent transformation that happens from the inside out.

Being in debt is a decision. Not a conscious one, but deep down, you know you made the choices that lead to the current circumstances. This is what my father would tell me, he was never one to shy away from pointing out the blatantly obvious.

My salad days are over and back then, being green, I did make rash choices and sometimes foolish decisions with my finances. But I don’t beat myself up about it too much. When you are young and single, your priorities are different and fiscal responsibility is low on the list of things I wanted.

Being in debt is a subtle kind of mental torture. I guess it depends on how deep “in the hole” you are. When debt becomes un-manageable, it is time to re-evaluate ones methods of decision making. I realized (at some point I guess) that having power over my own finances was a lot more valuable than I gave it credit for.

It’s funny, people can tell you things, that to them is great advice, but until you go through the experiences and suffer through the adversity of the choices you make, until you come to the realization yourself, you literally cannot hear the truth. Yes being in debt is a decision and not something that happens to you. It is the “sweet” alternative to being poor.

When you make the choice to get wealthy…I mean really wealthy, you change in subtle ways. Your priorities shift and your capacity to tolerate boring stuff like financial responsibility becomes stronger. Going from debt to wealth is a choice. Poverty sucks as I am sure you are aware of, but if you are in debt, you are probably worse off than if you were just poor and living within your means.

I realized something that lead to my own fiscal transformation, and you are about to learn something unusual. By going into debt, you are actually on the right track. The way to wealth IS credit. Having good credit means you are good to borrow on wealth producing assets like houses.

But going into debt to buy cars and stereo’s, big screen tv’s and the like, that is where you go wrong. The other type of debt that is worth going into hock for is education. If you find good instruction on how to build your income some time in the not too distant future, then this type of education is well worth the risk. Education and value assets like homes are the only things I will happily go into debt for.

My transformation happened from the inside out. It happened in less than 60 seconds. A decision was made and it was a small permanent decision. But you could say it had been brewing for the 10 years that I mis-managed my finances and suffered the stress of debt.

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In today’s time most people are in some sort of debt. Many people start to search for debt relief because the bills start to surpass the money they make at there job. Here is the list for the 7 best financial advice for 2008.

1. Never co-sign a loan for anyone. Why, it always ends up in court. It does not matter if it is your mother,father,brother,sister,aunt,friend etc. I have seen a lot of sisters and brothers taking each other to court lately for money problems. Don’t do it.

2. Try to buy items that have quality. Why, because it will last a lot longer than something that is cheap. You do not want to spend the little money you have buying the same item over and over again. Buying high quality items the first time around will help you save in the end. You will not have to buy that item for a very long time.

3. This is the number one reason why so many people need and look for financial advice. You must learn the difference between needs and wants. When you shop for food or clothing before you pull out your wallet, ask yourself do I really need this? If you answer,” I don’t need this but I want this,” there is your problem. When you are in debt and you need to make an important chose. You only should buy things you need, such as toilet paper, milk, bread etc. Do not waste money on things I call luxury items, such as a new dress, a new pair shoes or a new bowling ball. You’re wasting a lot of money.

4. Another really great financial advice that you can follow is to leave your credit cards at home. Only bring your bank card this way you can only spend what you have on your card. If you don’t have the money in your checking account you can’t buy it. This will stop you from spending too much.

5. Debt relief does not start with borrowing money. If you need more money it might be a good idea to get a second job if you need it. Many people I know work at two jobs. You can just work the two jobs until you pay down your bills to where you don’t owe anyone any money.

6. The best debt relief advice I can give you is not to gamble if you can help it. If you have to gamble only spend what you can afford to lose. This includes the Lottery also. I know people who spend almost there entire paycheck on lottery tickets.

7. If you have not thought about this last financial advice, you need to. Most people who become wealthy did it by owning there own business. It can be a work at home business also. If you make way more money than your 9 to 5 job then you are on your way. This has happened to many people.

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While it is a known fact that millions of people all over the world are looking for ways to be debt free, yet most of these people don’t know the right steps to take. This is the reason why I have written these simple and basic steps you or loved one in debt can take in order to deal with yo0ur debt problems.

One of the things you should do is to realize that you need help. That is obvious isn’t it? Yet, many people are seeking help from the wrong place. For example, when you or a loved one is sick, what do you do? You go to the hospital. Now, where do you go to when searching for help in order to be debt free? I want you to put all your hearts into searching and locating a good debt management expert that can help you out. I want you to remember, it must not necessarily have to be an expensive one. Make sure the fee is affordable and the program can really help you become debt free. You may use the World Wide Web, friends and associates to get a list of potential professionals.

After locating a good professional, it is advisable that you cut up all your credit cards. Though this is a bitter pill, you should do it! Many of the pills you are given in the hospital are bitter and are meant to help you get well. So, cut up the cards and stay all correspondence about credit card offers. If possible, block them from your email box. Also, stay away from any newspaper advert on credit cards. This will help you both in the short and long run.

The next thing you should do is to create a budget. Take a serious at your expenses. Look for ones that you can eliminate. For instance, going for dinner every night is a drain on your income. Stay indoor and have your dinner! Also cut down unnecessary between meals expenses. In other words, eliminate all the junks you eat before meal. There are several other examples I can give but I hope you get the idea. Examine and eliminate what is draining your expenses and leading you into debts.

After having a budget in place, I want you to go the nearest bank and open an account for repaying your debts. You must be committed to this account as you must make sure that you don’t make any withdrawal however for any reason except for paying back your debts. Resist all temptations to use the money in the account for other purposes.

The last thing I want you to do is to promise yourself that you will not go another credit card until you are sure you have the ability to manage it effectively. Please note that this is different from those New Year resolutions that you normally break even before the seventh of January of the year. This is a resolution you must stick to. This is because it has a lot to do with your present and future financial status.

You can see that all the above mentioned steps are simple and something you can do. Make use of them and become debt free with lots of ease.

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