There is no total debt elimination without repayment. We are actually talking about financial independence or complete freedom to do what you want with your money! Yet, you are the agent that reduces debt, not some wonder program that can wipe it away. It is unrealistic to hope for such things. What you have to do is to regulate your consume, manage you budget wisely and reduce unnecessary expenses to the point where you can make savings and start repaying your debt in advance or before the term. Do not put your hopes in the money from retirement plans or from life insurance policies because this can be very tricky!
Debt reduction should be maximal during your active work years, as you should no longer be indebted when you reach retirement age. The issue is that the retirement plan may not provide you with enough money to cover your expenses and you may end up penniless when you most need it. Create a budget worksheet and see which of your expenses are justified by needs and which aren’t. Then you will realize that total debt elimination strategies require serious commitment and a great deal of involvement. When you gamble or you have a shopping addiction, it is very difficult to get out of debt.
A total debt elimination plan has to rely on the family income. Yet, you should take the unpredictable into consideration too, because in the context of the financial crisis anything is possible. What if you had to face unemployment? Would debt be easier to handle then? You need to pay great attention to this issue. Then, do not pay just the minimum amount for your credit card debt, because you will have to cover interest for a very long time before extinguishing debt. It’s all in the interest of credit companies to keep millions of people like you tied to them.
In order to enjoy total credit card debt elimination you should stop spending your budget in advance. Then, do not take any credit card that is being offered to you before inquiring about the interest rate and the fees. The borrowing habits should help you choose the credit card. In fact, you could give up any borrowing habits that you may have. Total debt elimination takes great resilience, lots of effort and good management skills. Moreover, the consumerist trend is all the stronger and you have to resist it as well as you can. There’s tough work waiting ahead but with the right motivation you can do it!
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