Financial Freedom and Getting Out of Debt

January 22nd, 2008 | Stacey | Debt Management, Financial Freedom

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To achieve financial freedom, you need to get out of debt. Your money cannot be your own for as long as you owe a portion of it to another entity. Myth perpetuated about debt include the idea that debt is a tool and that by borrowing you can become prosperous. The only way debt is lucrative is if you are the bank or lender yourself. Otherwise, debt causes you to pay more to use your own money.

When you are encumbered by debts, high interest credit cards and ongoing loans, you are a slave to your bills and you can never call your money your own. Every penny you earn will need to go toward paying off your debts. You can get financial freedom now by getting rid of your debts, one by one. Pay each bill off and refuse to use any more credit. For as long as you continue to borrow, you will remain broke.

Consider the facts presented recently in USA Today about baby boomers. Of this group, 78 percent are carrying mortgage debt, 59 percent have credit cards to pay off and 56 percent are paying off a car loan. While debt is often abused by youth, when older people carry so much debt is puts retirement off even further. How can you retire comfortably when you are saddled down by debts?

To attain financial freedom, you need to avoid using credit and pay off your debts so your earnings can be your own.