Debt free - A reality or a dream

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How to get debt free
If you once have been caught in the debt trap, how do you come out of it and be debt free? We are different and each of us has our own lifestyle and our own financial state, so the way to debt elimination is different from person to person. One plan will be good for some, but not for others. You have to be certain that the plan you choose, whether it is debt consolidation or another plan, will be ... Read debt consolidation article



Debt Consolidation and Stress Free Living
I had taken a number of loans on different occasions. Once I took a loan to buy a car, then I took another loan on Christmas to meet the celebration expenses and the list goes on. I was much tensed as I didn't know what to do. I was fed up of harassing phone calls from lenders. But, last week a drastic change came in my life. I am no longer worried about all the debts I owe, because I opted for de... Read debt consolidation article



Debt free - A reality or a dream
What is it you wanted to get from being debt free? Peace?

Being debt free is truly possible. The hard part is changing our habits. There are many agencies, courses and books available both online and locally to help you to reach your goal of being debt free. Yes, it takes some work. Yes, your spending habits have to change. No, you can't keep using your credit cards and getting new ones when you max out what you have.

What you can do is learn to live within your means. That doesn't have to mean deprivation. In fact, if you reduce the stress of being in debt, you can live better with or without debts. I have read over 45 books on debts, money, prosperity, and spirituality in relation to our work and our money. They helped some. Education is a Good Thing . But after 20 years of reading these books and going to classes, I was actually deeper in debt than when I started.

I am not yet debt free. But I am stress free, and when stress does come up, I know how to Replace, Realize, Repair and Release to find the truth of the situation in a peaceful way. That matters. I learned this information from Steven Sashen who teaches Quantum Wealth: The Upside Down Money Class.

Answer this question: which way would you be more likely to be able to solve your debt problems, peaceful or stressful? Peaceful, of course! That's the question that Steven Sashen, QuantumWealth.com asks at every upside down money course he teaches. Upside down? What does that mean? Well, everything about his course is upside down. You take the course before you decide what you're going to pay for it. That's right. At the end of the class he will ask you to pay what you feel it was worth to you.

The really good part of the upside down money class is that you get to be stress free long before you become debt free. That's where I am right now. I used to wake up at 3 am in a panic attack, unable to sleep because some bill was due or my phone was about to be turned off. No more. Years ago, Steven was in that same situation. He was so stressed his hair was falling out in chunks. No more. Through a few simple processes of investigating our thoughts about money and debt, we can release the stress immediately. That frees us to be more resourceful in dealing with our debts. We get what we wanted all along, which is to feel better!

Without the stress, I am a better employee and more creative and resourceful about handling my money and my debts. And yes, there is solid brass tacks information in the Quantum Wealth class on how to pay off your credit cards & loans and become debt free. It's just that first we have to let go of the stress.

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Debt Reduction - How to do it

The math of debt reduction is actually very simple. A sixth grader could do it. The emotions need to be handled, too. Doing both will help you stick to your debt reduction plan and become debt free.

Let me show you the math. First, make a list of all your creditors. Divide the page into 6 columns. The first column is Creditor. The second column is Total Debt. The third column is Monthly Payment. The fourth column is Ratio. The fifth column is Priority. The sixth column is your "Paid Off Date."

Fill in each column for each debt. In the first column after the name of the Creditor, list the total that you owe. In the next column, write down your monthly payment. So far, so good.

Now, here's the math part: add up the Total Debt column to get a total of what you owe. Got it? Good. That was simple addition. One more simple addition: add up the Monthly Payment amounts and get a total of what you're paying per month.

Now, for the next column, divide each debt amount by the monthly payment. That means if you owe MasterCard $3,000 and the monthly payment is $150, the math is 3000 divided by 150 or 16.7. This number is your ratio. Simple division, right? See? So far, any sixth grader could do this.

Okay, when you have the ratio, number your debts from the lowest to the highest ratio. Simple again. If two debts have the same ratio, put the one with the lower total amount first. One more piece of math, calculate 10% of the Total Monthly Payments. Paying 10% more will get you out of debt much faster. If you just can't do that, it's okay. Follow the instructions using a lower amount, but do pay extra on the debt that is the first priority.

To do your own debt reduction and become debt free, stop using your credit cards. Pay an extra amount on the debt you numbered as first priority (the one with the lowest ratio) every month until it is paid off. When it is paid off, take the amount you were paying on Debt #1 and add that to the payment amount on Debt #2. When you pay off Debt #2, add that entire amount to the payment on Debt #3. Keep going until they're all paid off!

Debt reduction from $150,000 to zero can happen in as little as 2 years if you use this plan. Along the way, you will want to learn to handle the emotional aspects of spending and debt so that you can stick to your plan. I recommend either Debtor's Anonymous, Debtorsanonymous.org or better yet, the Quantum Wealth class, Quantumwealth.com. It is essential to your debt reduction plan that you handle not just the math, but also the emotions. Soon you will be debt free with your debt reduction plan!

Molly Mettarod teaches high school math and business classes. She feels it is important to educate teenagers about debt before it becomes a problem. On the weekends, she loves to go camping. You can read more articles about debt reduction at Debt Reduction Site


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Debt free - A reality or a dream
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