Debt Free For Life

Debt free for life is the ultimate dream.  Who wouldn't want to go back to a simpler way of life and live off the land?  But many can't because of those dreadful debts that keep them chained to the grindstone.

Sadly, most people don't know how to live debt free.  But it can be done.  Read on.

Debt Free for Life

If I Could Just Win the Lottery

You may think the only way to get out of debt is to get a huge windfall, like winning the lottery or inheriting a lot of money. Or even finding a job that pays more.

Nothing could be further from the truth.

Debt Free for Life

The fact is, if you can't manage the amount of money you are currently making, you're not going to be any better off even if you do win a lottery or get some other great gain.

Becoming Debt Free For Life
the Old Fashioned Way

Instead, the only way you'll likely ever be debt-free permanently is if you curb your spending now and make sure more money is coming in than going out - and make sure your debt is decreasing every month.

Fortunately, there's a system you can follow to pay off that debt and find freedom.

The Snowball Method

Let's say you owe money on four different accounts at different rates of interest: twenty-four percent, eighteen percent, twelve percent, and eight percent.

Make extra payments on the debt at the highest rate of interest first until that debt is paid off.  Once that debt is paid, use the money you were paying toward that debt with the highest rate of interest charge - twenty-four percent - and apply it to the loan charging eighteen percent.

When the second debt is paid off, apply the money you were paying to both debts toward the next debt - the one charging twelve percent.

Then, when that debt is paid off, apply the money toward the debt with the lowest rate of interest. 

As you pay off each debt, you'll be able to pay off each debt much faster, because you'll be paying progressively higher payments on each debt. Before you know it, you'll be debt-free.

So Where Will the Money Come From?

At this point, you might be asking me: Where will that money come from?

You may think you have cut back as far as possible, but look hard enough, and you can usually find ways to save money and live debt free for life.

Spending is a Habit

The first step toward becoming debt-free is to look at what you are spending money on each month. For one month, keep a small notebook and write down every purchase you make. 

Yes, it's painful, because most people don't want to think about the things they spend money on any more than they want to think about the food they eat throughout the day. But learning your spending habits is just as important as keeping track of the different foods you eat.

Start studying your spending habits, and more often than not, you'll find that you spend money to buy things you don't really need. Do you really need that jacket with the designer label, or will a lower-priced one do just as well? Better still, can you find a jacket at a thrift store or garage sale?

The secret to becoming debt-free is to get into the habit of looking at everything you spend money on and start asking yourself: "Can I find it someplace cheaper?"

Debt Free Living is a Way of Life

Related article: Read These Practical Tips To Save Money

Related article: Nine Ridiculous Ways To Save


Just remember that living debt free is a lot like healthy eating in that it has to become a way of life. Spending more money than you have is a habit that can be broken, although a gradual change of behavior is far better because it leads to permanent changes.

To become debt free for life, don't go cold turkey and cut yourself off from everything all at once. If you do, you'll likely feel deprived and do binge spending. Instead gradually learn to cut back.

Before you know it, you will be debt free and experience the freedom you've been longing for.

Learn More About Frugal Living

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About the Author

My name is Sue Merriam, and I began the journey of self-reliant living more than three decades ago, which enabled me to stay home with my children. Fifteen years ago, I founded Joyful Homesteading to help others save money and face the future without fear. My goal is to give you practical, honest advice so you can save money and experience the joy of simple living. I hope you join me.

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