Are you in debt ?
A lot of people today are in debt, around 80% of people are in debt to somebody.
A big percentage of that debt is of course mortgage debt.
Mortgage debt is one of the debts I can understand, if you take a small mortgage and don’t spend more than 20% of your gross pay on housing than you got yourself some reasonable housing. Other than most people who are drowning in housing debt.
Our own housing payment is currently under the 20% I recommend, more like 11%, you can believe me when I say I have no stress regarding housing.
I once had a rental that cost around 30% of my monthly NET income, and even then I was stressed. I just don’t like giving other people my fucking money.
Our article on housing debt Do you live for your house?
The rest of debt is student loans, credit cards, car payments and medical debt which I believe is one of the worst. People get sick and get debt to pay those bills, but every month you have to repay those bills you get a reminder of that terrible time again, again and again. Then you go to work to pay those medical bills, while there is a great chance the work itself created the sickness or accident.
Thats a nasty situation you got yourself in.
Debt is never good and you should get out as quickly, debt will hold any man stuck in his situation. I know the feeling myself.
Been there, Done that.
I thought it was so easy to get a ‘new’ car and got myself a beautiful thing called a Car payment. And what a mistake that was. Check out the idiocy that are Car payments
The feeling of having debt is the feeling of walking around with an iron ball stuck on your foot, you know what kind of one…. they also use it at work camps to keep you from escaping. Well that says enough.
The debt that nice banker got for you looks like a nice present to give. So you can easily afford everything, looks like they know how to sell it at a great rate, ‘you don’t have to pay 5.000 now, just 66,45 every month for 88 years’ .
Once you write down at the dotted line, you sold your soul to the devil, the ‘Slave master’ and now you are his Slave. And work 50 years for that shit called debt.
Well fuck that, doesn’t really sound like a great deal after all right?
Being a slave is the biggest misery some one can have, because it is sneaking into your life. The problem with debt today the day is that it is accepted in our culture. You keep paying it every month and you are thinking to yourself where the hell is all my money going.
You are making some banker rich. Because you keep paying those suckers, well I must say, if you keep yourself in debt… then you are the sucker. The banker is laughing all the way to his bank account, counting the 19% return he gets every month from your credit card. The average credit card debt is now $9.333 , that’s gonna be $147,77 every month of interest. That money is just gone man, gone forever out of your pocket.
And you keep slaving away your time away at some shit job. Just because you can pay them every, single, month.
You need to get rid of that shit man, you need yourself some freedom to do whatever you like. You gotta be going your own way. And your debt is getting in the way to make that even possible. Every time you want to make a decision for yourself or your family, you will always be thinking about that debt. And that’s why its holding you back like a prisoner in a jail cell.
Want to go on a cruise? No, daddy gotta work because them bills ain’t paying themselves.
Want to chill out and spend more hours with your family? Nope, you gotta make them hours count with your nice people at work because the boss need them hours too you know.
Just want to sit on a bench and sleep al day? No can do, because you are a damn debt fool.
Anyway, the debt game is what the current system is all about. Civilization, The machine, The matrix, The empire or whatever the fuck you call it. They are making the system like this so you get stuck into it.
Once you start going to school they get you with credit card and student loans, because you need to be as hip as the other kids. You want that new flashy Phone, go out of state, live in your own place without ever going to work after school. But you know what? Those bills are stacking upon each other and once you get to work you start with a negative net worth.
Costing 1 – 3 years of your life, depending on how much debt you have. Don’t even get me started if you have more then $100.000 debt and your annual income is under $50.000. Then take out half a decade just to pay school back. Holy shit you really want that?
Once you get out of school, you still need to impress other people right? So you want a nice car and house, bringing your monthly expenses up to or over your income. Then you’re in a situation that stops you from paying back debt, working untill you are death.
If you keep going further in that situation you will become Bankrupt, you don’t want that, that will be going after you your entire life and sets you back at least 10 years of you life if it ain’t more.
Now that you know in what kind of situation you are, how are you gonna get out of that hole?
Fill it up with cold hard cash.
How to get out of debt
- First: check what kind of debt you have and to whom you own it, then write it all on a paper. No, not on the computer you are watching this with, write it with Pen and Paper. There is something about pen and paper that gets you more going, like you are feeling that pain going off on that paper. So DO IT.
- Second: write Lowest amount up and go down as the amount of money grows. Don’t mind the interest rate, just the amount of $.
- Third: start looking where you can save some money, Gas & Electric, Groceries, Biking more, Sell your stupid house and move closer to work, in a cheaper house. Sell your expensive car and get a cheap, good gas mileage car (Beater Toyota or Nissan). Everytime you save money use it to pay off that debt.
- Fourth: once you saved as much as possible, start working more on your job if that is possible. Aint it possible or are you working 60 hours a week? Then try to start a side business, create an idea where you can make some money without a huge investment cause you ain’t got no dough to go.
- Fifth: you are making more money then your expenses and using that cashflow to repay debt. Your now getting out of the ‘hole’ great, congrats on your first steps to a bright future.
- Six: Once you pay 1 debt off, you use that money that you pay on the next debt. This is the snowballing way of paying off debt. Also known as the Ramsey way, he is a real hero regarding getting out of debt. Check out his site Dave Ramsey
After doing these 6 things you are on your way to getting out of debt. You’re a real hero that you are going to change your family’s future. Stay believing in yourself and you will get there, whatever you think with action added, you will attract.
Getting out of debt is mostly psychological, its biting you and you we’ll be thinking that all the money you use to pay of the debt is going nowhere, it’s just gone. And that is what is making it hard. But remember that the money you use to pay off debt, is saving you money. Saving you from paying ‘bills’ every month and not to forget all that interest you are saving.
Once you are out of debt, you can use your income to create a big legacy for yourself. You have the freedom to do whatever you want.
Start a business ?
Go on holiday a few times a year?
Save for your dream house?
Save for your dream car?
You can all do that ,
Once you are out of Debt.
Until next time,