In this modern world, practically there are no slaves. But, there are a new trend of slaves. We all are slave to our debts. Until we have not pay out our debts, we are still considered a slave to it. Is it possible for us to roam freely without any debts? Now, that is what I call Independence day in my life. Even millionaires who still owes money to banks are considered as slaves.
I still have debts for my car, housing loan, education loan, credit cards and personal loan. For most of us, mortgage is the biggest figure among all debts. My first step of reducing debts is to reduce the unnecessary expenses. Following by increasing multiple source of income. So, how are we going to pay up our debts faster? Start out with a list of debts from smallest to highest. Pay all debts from top to low. From balance, pay extra on the smallest debts. This allows the smallest debt settled faster. Continue the loop until all debts settled.
I know it sounds so easy to explain it here, but if we don’t do anything of increasing debts, we might end up in bankruptcy. So, do your list today and start your debt elimination program.
My biggest and only debt is my morgage, I try and buy stuff with the money I have.
If I don’t have available money I just don’t buy unnecessary stuff – only essentials.
Almost everyone’s biggest debt is mortgage. I use to work as mortgage officer. My best advice is to pay extra each month or pay weekly. Make sure your loan is based on daily interest basis. It can save you a lot of money plus can finish up the loan a lot faster than signed tenure.
Atniz….my wife was a MORTGAGE LOAN OFFICER at a major US financial institution.
About 5 years ago, she was promoted to “Wealth Management” division……she now handles Investments, Loans, Banking and Financial Planning for High Net Worth (rich) clients!
The same strategies she uses on her wealthy customers, we practice at home (on a smaller scale though).
No wonder you know a lot about mortgage too. Congratulations to your wife for her promotion. She should be a super sales women there to get promotion. I’m just an average, borderline target hitting sales. It is tough to work in mortgage sales with our target starts with big zero on early of each month.
I have a debt untill 2014
I want to finish with it ASAP
I wish you good luck in finishing it sooner than that.
I would say it is quite impossible to roam without any debt in this modern world. Quite impossible!!!
You are 100% true Bob. Almost all of us are slave to our debts.
Our household is completely debt-free except for our monthly home mortgage payment ($900). We pay off our credit cards every month, so there are zero balances!
That is wonderful. Not many have a less debt free life like you. My advice is to pay off your mortgage faster by paying extra each month. Mortgage loan goes with daily/monthly interest rate. Paying double can save more than half of your tenure. Try to check out with your loan advisors.
Our mortgage term is only 12 years……in the United States, most home loans are for a 30 year “amortization” (loan term). Meaning, we are actually paying 2.5 times the 30 year payment amount.
In the US, there is a TAX ADVANTAGE for having a Home Mortgage Loan. You get a tax deduction for the INTEREST payments. Every dollar paid for Interest on loan reduces your Taxable Income by that amount. Essentially, about 20% of our payment is subsidized by the US Government because of the tax savings.
12 years? Wow! Your monthly due should be very high. Of course it is a lot better than normal 30 years terms. It’s been a long time I didn’t use words like “amortization”. hehehe
Government tax reduction for those who paying mortgage is very helpful.
my debt is going to kill me… debt everywhere and anywhere. hmm.. just try to struggle. keep fighting! lol
Debt is a perfect murderer. Let us pray and work hard to murder it back.
that’s good article. but ithink you must bold to important words!!..
Usually, I bold on titles or subtitles. Keyword bold might make our article look like SEO made purpose which I don’t want.
The only way to keep off debts is to spend within or below your means. But for those who are already under debt, they need to get out ASAP!
Agreed. I wish to come out of my debts too. Hope it will happen soon.
Debt is becoming Universal problem these days, specially when economy is slowing down & employees across universe are loosing their jobs. One should be very much careful before buying in bulk and spending more money specially when he or she is not capable of paying back. As and when you go for shopping always make a habit of paying bills via debit card.
Exactly Ricky. I’ve stopped using my credit card since I can’t control my spending nature. So, I turned to debit card and start saving more. I think credit card works best for those who can control their spending.