Get out of Debt. All debt!

The Good book, the Bible, is right when it says that "the borrower is a slave to the lender" (Proverbs 22:7).
People in dire financial need usually resort to borrowing. If not checked, they become addicted to it. The only solution they see is to borrow from the lender. A piece of advice: shun borrowing like a plague!

For those who are in debt: get out of debt, all kinds of debt!
Here are five (5) strategies to free yourself from the lender:

1. Perform what David Ramsey calls "Plasictomy". Cutting your credit card and using cash only.

    There is no positive side to credit card use. I suggest you use Debit Card instead. It keeps you

    constantly aware of your financial condition and prevents you from buying impulsively and unnecessarily.

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2. Don't pay the "Minimum Amount" suggested by your credit card company
    Credit Card company are loan sharks! When you pay minimum amount you end up paying your
    debt in 32  years.

3. Pay credit card balance beginning with the one with the lowest balance. If you do, it feels like you're
    doing something to eliminate your debt. I did and I got rid of one credit card and it feels so good.

4. Negotiate. The credit card company is eager, so eager to have your business. In this regard, they are

    open to negotiating anything you put on the table like interest rates, annual membership fee, etc.

    I still have one credit card debt, which I am trying to manage and eliminate. Every year, I request my credit card company to reverse the annual membership fee they charge me

    and they gladly oblige. This year, I did the same and to my surprise, they told me that from this year on they will no longer bill me the annual membership fee. Just one of those fees you can deduct from your debt. It feels so good!

5. Talk to somebody, please. There's help. Share your burden with someone you can trust. Don't suffer alone about your debt situation.

To your debt-free life,
Jimmy

DEBT IS HABIT-FORMING

The other day I got so encouraged by Dani Johnson’s idea on eliminating Debt. As I listened to her, the words she said still rings in my ear: “Debt is a habit and it has nothing to do with how much money you make!”

Anybody who wants to get out of debt should consider this seriously. Debt is habit-forming. It becomes your second nature when you don’t do something to stop it.

How do we get the habit?

You start simply by doing things REPETITIOUSLY. When you buy stuff on credit repetitiously, buying stuff on credit becomes EASY. When buying stuff on credit becomes easy, buying stuff on credit becomes PLEASURABLE. When buying stuff on credit is pleasurable, buying stuff on credit will be done OFTEN. Now here’s the clinger... When buying stuff on credit is done often, buying stuff on credit becomes a HABIT!

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That’s how you acquire the bad habit called DEBT!

What’s the answer? Simply replace this BAD habit with a GOOD habit. The GOOD habit is buying stuff only after you’ve saved for it, in CASH. Now go and repeat the process by replacing that BAD Habit called Debt.

Here’s to your debt-free life,

Jimmy