How to Eliminate Debt
Destroying Destructive Debt
- "A man in debt is so far a slave." Ralph Waldo Emerson
- "The borrower is slave to the lender." Proverbs 22-7
- "Rather go to bed without dinner than to rise in debt." Benjamin Franklin
- "Debt is the slavery of the free." Pubilius Syrus
If you've made your way to this webpage, it's because you know that eliminating destructive debt needs to be your first priority. I recommend that you sit down and do an inventory of all of your debt today. Start paying off your highest interest destructive debt and continue until you are finally free of all destructive debt. It may take several years, but being debt free is the first step to financial fredom.
What is destructive debt, you might be asking? Destructive debt is debt that does not pay for itself. In other words, debt to buy a personal car is destructive because the car is not providing an income or increasing in value. Constructive debt, on the other hand, is debt that provides an income and pays for itseld. Constructive debt may include debt used to purchase a home that you rent to someone else. If the numbers on such a transaction make sense, that debt may be classified as constructive debt, and should not necessarily be avoided.
Where Do I Start?
I know it may be overwhelming to face something like a mountain of debt. But that mountain has grown from a mound and you can slowly work your way through it and back to a life where you are not suffocated by debt.
If you owe Under $15,000
If you have a relatively small amount of debt, you should be able to create a plan to pay down that debt in a few years. Take inventory of all of your debt. In most cases, smaller amounts of debt are financed at higher interest rates. That means that you can make a dent in your total debt quickly by apaying the high rate debt first.
If you owe 15,000 or More
If you owe a larger amount of debt, you actually may have some more leverage in negotiating the terms of that debt. It may be a good idea to contact a debt consolidator. These debt consolidation organiztions are able to negotiate the rates and other terms of your debt to make it more favorable. Once you're able to put a plan in place to attack your debt, you can begin working on your plan to create wealth.
