Be Debt Free

Debt Reduction | Debt Management | Debt Ratio | Debt Consolidation

Paying off debt is very important if you want to live a happy, healthy and stress free life. There is no better feeling than when you know that no one can call or write to you asking you for money that you owe them. Taking the right steps towards debt reduction will help you to get to this lofty, but achievable goal of becoming completely debt free

I was in the bank yesterday and a gentleman was paying two months mortgage payments. He was I would say a young fifty something, but I overheard him tell the bank teller that he only had one more month’s mortgage payment to make and then no more.

I was happy for him. The mortgage is usually the largest payment we make monthly, and is usually the largest debt that most people owe. Being able to complete the payments on a loan that lasts for anything from 15 to 30 years is great.

Still, even if you’re not paying off the largest debt you owe, reducing the smaller ones and finishing them, leaves you with a sense of accomplishment. There is a sense of relief when that last cheque is sent, and you can wave goodbye to that creditor for good. No more interest payments, no more letters, no more phone calls.

If you are someone who does not have much debts, then maybe the emotions as I have described will be unfamiliar to you. However if you are someone who is currently struggling to pay off debts, then you are probably wondering “When will I be able to feel relief”. Don’t worry, that feeling will come. It may take a little while, but the best thing is that you are starting to tackle it and you are looking for help.

Who Can Help Me Pay Off My Debts

There are many different kinds of organisations around that will help you find solutions to your debt worries. The types of organisations that I would say are the best are those who have no vested interest in getting money from you. They provide debt advice, and debt management programs aimed at helping you change the way you deal with your creditors.

These organizations are usually non-profit debt advice companies. They never charge for their services and will never ask you for payments/fees in order to organise a program of debt relief on your behalf. Be weary of people who claim to be able to remove debts from your record, or those who say they can save you from bankruptcy if you pay them a certain amount up front.

Reputable businesses, or organizations do not request money up front for services they have yet to render. (Read into that last statement what you will). Debt management advice is not a product that can be bought of the shelf. One solution does not fit all. Your individual circumstances make your case unique. You won’t have the same amount of money owed to the same creditors for the same length of time, accumulating the same level of interest as everyone else.

Learn How To Reduce Your Debts

Something that is not well known is that you can work to eliminate your debt yourself. Using debt calculators and learning more about the system of credit, how it works and getting a good understanding of how creditors look at the debts that you owe can all assist you in finding ways to reduce and eventually eliminate debt.

One thing I found useful was understanding the different types of debt’s that I owed. Secured debts, unsecured debts, regular or recurring monthly or annual debts for services all contribute to your ability to control your debt to income ratio. Although I will write more about debt ratios later, I am mentioning it here to give you an idea of how this ratio can affect your ability to live a stress free life.

In our world, it is almost impossible to live without some sort of debt. You have monthly recurring payments that you have to make to suppliers of household services. You may have car payments or annual payments such as house/land taxes or insurances. This makes it impossible to be completely debt free, unless you don’t have any of the services and live completely self sufficient.

It is however possible to live with a debt to income ratio that makes your life easier to manage. By reducing your outgoings you can reduce your debt to income ratio and thus ensure you are on your way to becoming debt free

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