Today’s post is a post from Steve Stewart at MoneyPlan SOS. You can read more about Steve at the end of this post.
So many of us grew up believing that debt is a tool. We hear that using other people’s money was another way to build wealth. Unfortunately, that is not true for the majority of Americans who started using this “tool” and have gotten themselves into a situation of paying interest instead of earning it.
Hopelessly in debt
The debt becomes a burden and we come the the realization that most of our income is being used to make minimum payments on credit cards, monthly car payments, and student loans. A study by MyVesta.org found 49% of those who struggled with debt could be classified as depressed, and when we are depressed it seems hopeless that we would ever be able to be debt free.
But there’s good news, you have a debt free date!
Even when the amount of debt seems unbearable, there’s good news. As long as you are making your minimum payments and you don’t borrow any more money you have a debt free date! Stop using your credit cards today and you will reduce their balances to zero over time, automatically. Keep sending payments to Sallie Mae and your student loans will be gone, without fail.
How long it will take
Some of your debts will take decades to pay off when making minimum payments. So don’t just make minimum payments. Work extra to earn more money and to keep yourself away from boredom shopping. Sell some things and get an extra boost in your debt elimination plan. Use cash (or debit) to pay for things instead of credit and your debt free date will be upon you in no time.
Don’t be afraid to be debt free
Paying off existing debt is hard and most people give up before even trying. Don’t let that deter you from paying off loans. Earn more, spend less, and send extra to the smallest balance and you will reach your debt free date sooner than you ever imagined. And all you really had to do all along was Pay Attention, Not Interest.
Steve Stewart is a self-proclaimed Personal Finance Architect who has the heart of a teacher. His purpose is teaching everyday Americans the secret on how to win with personal finance, which is to simply Pay Attention, Not Interest. You can read more about Steve on his website, Money Plan SOS. Steve also produces a podcast that you won’t wan to miss. You can find the MoneyPlan SOS podcast here.
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