Debt Free Living

Certainly, the recession completely upended the plans of lots of people who didn’t deserve anything like this. There were retirement savings gone, jobs and dreams lost. And then there are the lives that are often upended by nothing as unfair or as dramatic as the recession. These are misfortunes that we bring on ourselves by a careless lifestyle that doesn’t think enough about the future.

With all the lessons in the unpredictability of life that a recession can bring, there are still lots of people around who can’t understand what is wrong about living from paycheck to paycheck, about failing to put anything by for retirement, and about not staying committed to the financial fixes they need to make to turn their lives around. Debt free living is a dream that is within reach for most people. If only they would take it.

For some reason, to a good number of people in the land, the only financial plan they have is to deny that they have any problems, daydreams of winning big at the lottery, hoping for a handout from the government – these constitute some of their best notions about how to become financially solvent. When things get tough, some people just give up hope altogether and refuse to do anything out of fear. The thing is, debt free living is eminently within reach. No matter who you’re dealing with. Let’s get with the rules there are to debt free living. The best thing about them is how easy and approachable they are

Your first call here would be to raise your FICO score to at least 740. And there are no two ways about it. The lower your credit score, the higher the credit card companies will raise your interest rates, and the lower they will bring your credit limits. Some people try to fight the credit card companies by¬† returning all their cards and going back to the Stone Age. As much as how this plan has its heart in the right place, it only harms your interests. To get the best interest rates on mortgages and other loans, you absolutely have to have a credit card. You just make sure that you don’t carry any debt on it.

You have to make sure that you understand that the best way to climb out of a debt ridden existence is to make sure you don’t charge up any new debts. Living within your means right now would be a good way to move towards debt-free living in the future. And one of the most important things to do, towards this end, would be to make sure you always have at least three months worth of living expenses set aside as savings.

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