How to be debt free?

Almost everyone wants to be debt free for obvious reasons.

So, how can we be debt free?

A simple question, but quite complicated if we think about it. The economic crisis resulted in people losing their jobs, taking a pay cut, losing homes – and are searching ways how to reduce and ultimately eliminate debt i.e. how to be debt free.

The process of eliminating debts could be daunting at first, but by being consistent and disciplined; success can be achieved in a few months. Do not believe that those who freed themselves from debts are the exceptions, you can do it also – and you have to do it now!

It is a challenge when you have reached credit card debt limits, and you have to pay off bills, while trying to keep yourself afloat, and can barely pay the minimum amounts due every month. It is common knowledge that creditors prefer account holders that make minimum payments. Minimum payments goes towards interest, late payments, limit fees making your balance increase that could possibly reached beyond the original credit card limit – making us what? A cow – a milking cow.

What can we do?

1. Take control. Trim down the monthly budget, cut cable programming, analog telephone service, food delivery orders, don’t buy a cup of java every morning, cancel magazine or newspaper subscriptions, no more takeout, switching to a basic cell phone monthly plan or going the prepaid route. Shop in, thrift shops, wholesale outlets which means avoid end retailers or boutiques. Buy grocery items in bulk from wholesalers, buy generic medicine etc. etc.
2. Negotiate. Ask for a lower interest rate for your credit card debts. Refinance your mortgage, ask for better terms on interest and payments or restructure existing one, to get a lower monthly bill.
3. Ask for help. Apply for state sponsored home heating bill assistance, get supplemental social security income or benefits fill out an application for federal government grants that are available to qualified American taxpayers.
4. Trade and shop. Trade your gas guzzler SUV for an American made hybrid model, shopping around for cheaper auto insurance, get/search for affordable state health insurance plans.
5. Adapt your diet and exercise frequently. Health is wealth

Once the above are done religiously, it is inevitable that you would have money saved at the end of the month to pay your debts. Sooner than later, those debts will be gone and you’ll be able to have a relaxing and satisfying, sigh “at last” debt are paid.

Being debt free also means having a good credit report and score and other long term advantages like getting a favorable opinions from future employers, who these days, consider creditworthiness, as a critical job hiring factor, reduced stress, among others.

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  1. Please give tips which are in Filipino culture or in general culture... Filipinos don't use American Cars(We don't even have cars) nor do we use heaters(its kinda tropical here)

  2. We're addicted to credit then enslaved to debt which we placate with more credit and flirt with disaster.
    commercial real estate loans


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