Debt Elimination Will Become A Primary Goal Only When You Understand The True Cost Of Debt.
Debt elimination leads the way to financial freedom.
In fact... financial freedom may not even
be achievable until and unless you first
become debt free.
Debt is truly that much of a financial detriment.
Your debt management goal must simply be...
To Have No Debt.
Debt... More Than Anything Else... Can Threaten Your Financial Future And Well Being.
It causes more divorces, stress, heartbreak, family
problems and strife... than any other issue.
Debt can make your life miserable.
It can rob you of your security and peace of mind.
We have been conditioned to the fact that credit and debt... are easily obtained and are socially acceptable.
In fact... in today's
world... it is basically expected that you will have debt.
To be totally debt free is very rare nowadays.
Unfortunately... little or no focus is put on understanding the actual total negative impact of a
lifelong debt burden.
Our schools... for the most part... do not teach the importance of debt elimination.
And so... the
awesome power of debt elimination
is not clearly understood or appreciated.
This disconnect is not only illogical but it may cause you to unknowingly commit nothing less than unintended financial suicide... if not corrected soon enough.
That is why it is so important to get educated about the real impact debt has on your life and your future.
Once you are truly clear... about the total direct costs of debt service.
And, once you are truly clear... about the indirect long term affect... that committing so much of your future earnings to debt service has on your life.
That is when... you will make debt elimination your top priority.
The undeniable truth is...
You cannot make smart choices about money until you have a crystal clear measure and understanding of the total impact
your debt (either current or considered) has on your future.
Vow now to never again accept credit or incur debt without first fully understanding the total cost.
What Would Be Your Answer To The Question... How Much Debt Do You Have?
Would you say... the current balance owed?
That is the answer given by most people.
Now... technically that is correct.
However... unless you are able to make the payoff now... the balance owed is not the amount that you will end up paying.
Until you convert rate and payment into dollars... you will not have the right perspective of just what your debt really represents.
Accepting debt or even just
based solely on rate and payment will obligate your future cash flow without giving consideration to the full
magnitude of the obligation.
This is a recipe for disaster.
Such choices may put your financial future at risk.
Effective debt management requires that you quantify the total cost of your debt and how long will it take to pay it off.
The total cost of your debt is...
The current balance owed plus the amount of interest you will pay based on your current payment amount and method.
Next... you must know how long it will take to pay off your debt with your current payment format.
Until you know the total cost of your debt and how long it will take to pay it off... you will not make good choices when it comes to debt.
Remember, debt elimination will become a primary goal only when you understand the true cost of debt.
Consider this example...
You have a credit card balance of $20,000. The interest rate is 18%. You make the minimum required monthly payment (2% of balance for this example).
Sidebar... some card companies may require a larger minimum payment (4% for example). A larger minimum payment will pay the balance off faster and reduce the amount of total interest to be paid.
Getting back to our example...
This payment method will require well over 30 years to get rid of this debt. And you will pay $50,225 in interest alone.
So the total cost to you under this sort of payment plan is... $20,000 balance plus $50,225 interest for a total of $70,225.
So really... how much debt do you have? $20,000 or $70,225? Were your purchases worth $70,225 to you?
Are you OK with paying $70,225 for $20,000 worth of products or services?
Would you now make different choices if you could do it over again? I hope so!
Spend your hard earned money wisely.
Calculate the total cost of all of your debt based on your current payment approach.
Never make new debt without first knowing how much it will ultimately cost.
Don't let yourself end up "old and poor".
now so you can have the life you deserve.
Make debt elimination your top priority.
"Because It Matters"... Jim
Are You "Genuinely Serious" About Debt Elimination?
If so... download this very powerful and totally FREE
Debt Stacking Software.
Find out just how quickly you can eliminate all of your debt... including your mortgage.
And then... evaluate what saving and investing those "freed up" debt payments could do for you.
Take Control, Stay On Track, Be Highly Motivated,
Change Your Future!
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