Many Americans are overloaded with debt. They are stuck in a vicious cycle that they just can’t seem to get out of. Yet, with even all of the statistics that point out how bad debt levels are for households, there are some households that don’t have any debt whatsoever. Before you jump to conclusions and say, “Yeah, but the ones that don’t have debt are probably rich” think again. There are a number of U.S. households that have completely eliminated all of their debt. This not only includes credit cards, auto loans, and student loans, but also the grand-daddy of them all; their mortgage on their home.
So how do they do it? They declare, “WAR ON DEBT!” They draw a line in the sand and say, “Not any more. This ends right here. From this moment on, the line only moves downward, not upward.” The key point besides the words is, they actually meant it. They didn’t just dream about it, think about it, or consider it. They threw down the gauntlet and said, “I am getting debt free and am never going back.”
What were some common action steps?
- Some thought they needed extra income to dedicate just towards debt so they got a second job or created another source of income.
- Some got raises but continued to live off their pre-raise income and dedicated all pay increases towards debt.
- Some cut out all of the waste and fat from their spending budgets.
- All flat out refused to create new debts and loans.
If you are stuck in life in a place that isn’t leading to fun and happiness, ask yourself, “What can I do different?” Because if you aren’t happy where you are now, but you continue to act and behave exactly as you have in the past, why would you expect your future to change? You must be willing to change something (perhaps many things).
But I can tell you this, when we help our clients move towards and create debt free lives, they all come back and say the same thing; “We are happier being debt free.” They just had to do the heavy lifting to make that dream a reality. But it can be done. There are plenty of people at all income levels that have proved that time and time again.
So draw that line in the sand and declare a war on debt.