Get Free of Credit and Debt

Way back when I went to college I remember seeing tables setup all over the university campus with credit card sales rep. Credit card companies love college students. They love to get them hooked into debt, a state in which many people never get out of, especially in America.

Instant gratification is the name of the game and credit cards make it possible. The desire to consume things we generally don’t need with money we don’t have is the biggest financial plague of modern times. As I’ve mentioned before, I was victim of this spending cycle for many years after becoming an adult.

I racked up two student loans and a large MasterCard debt. Fortunately, my case wasn’t as bad as many. People make worse mistakes like rolling up their credit card debts into their mortgage payments or borrow heavily against their house as if it were an ATM machine. I was shocked to find my own family members doing this. In one instance I assumed they had paid off their house years ago and was shocked to find they still owed a lot because they continually borrowed on the equity in their home.
In a previous post I mentioned ‘Groupthink’ – acting and behaving like those around us, even when it makes no sense at all. Everyone is doing it so let’s do it too! It’s like purchasing an automobile. Almost everyone purchases on loan installments instead of saving the money and buying outright – but it’s still financial stupidity.

Banks and credit card companies love financially stupid and expedient people. They make a killing on interest payments. If you are one of these people then it’s time to make a change.

If you have credit card debt on several different cards don’t roll up into one loan or mortgage payment. This will just tempt you to get more credit cards and get into further debt. Make a budget to save at least a little money each month and start by paying off as much as you can of the highest interest card. Pay off one card at a time starting with the one that is costing you the most in interest.

In 3 years I paid off over 9000 on a very meager budget. It wasn’t difficult, I simply had the desire to change my financial habits and then it was not difficult to sacrifice that money each month. What really gave me the desire was brainwashing myself with different ideas about money. I read Kiyosaki’s books and listened to audios. I read and listened so much that it broke my desire to spend and be careless with money. If you struggle to change your habits just feed your mind with material on financial freedom and I’m sure you will not need will-power anymore to change your habits.