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Lifestyle Changes for a Debt Free Life


Lifestyle changes needed for a debt free life! Today there are way too many temptations in the world which lead to being piled high with insurmountable debts. The advertisements tell us that with credit cards, nothing is impossible. Sales people and credit business folk tell us it will not hurt to have a debt here and some debt there. Little do we know that debt can actually lead to death. It is possible to die from debts.

Maybe you are asking how? Ever heard of suicides committed simply because someone had too much debt so that person couldn't think of any other way out but to exit from his debt-laden world through killing himself? No? You are not reading enough news.

So, how do you avoid being a victim of debts? Learn a thing or two from the following advice about how to manage a debt free life and remember all that we have discussed up to now ...

Understanding the Need to be Thrifty
One important way to avoid having debts is to have enough money for your needs and even for your desires! How? Apart from landing a high-paying job, being a savings-savvy person at the same time really is the solution. But what if you do not have a well paid job? Knowing how to save will still help you to your goal. Here are some easy to follow tips:

Budgeting : Knowing how to properly manage whatever amount of money lands in your wallet each payday needs to be one of the major goals of a debt-free life. You have to evaluate yourself to know what type of budgeting will suit you and your lifestyle. Do you need a daily budget program? How about a weekly or a monthly one? Your cash-flow will be better monitored if you list ALL of the your expenditures and actual spending.

Brown bagging should become a common practice if you are to make yourself debt-free quicker. Now if you have not fallen for the culprit yet and you are just so not into the food you prepare yourself, consider a compromise. Instead of bringing a lunch box of some sort, learn to drink your office coffee so that you have enough moolah for your lunch.

Coupon clipping is another good move. This will not only help you to save, but it can earn you some friends as well who may support you in your debt-free life campaign. How? Look for other coupon-clippers and trade with them.

Do you know how to save on telephone services? If you need to make long-distance calls, do not allow yourself to be sweet-talked by the smooth operator. Asking for help from the operator means having to spend more. If you use telephone cards, check the expiration date and verify if there are any hidden charges.

And here's another item... Club memberships that are rarely used should be dumped! Why waste your precious money on things that do not get fully used, right? And talking of rarely used things, how about stopping credit card use all at once? Learn to afford not to swipe that credit card if you want a debt-free life. That is one of the biggest temptations in this world!

Distinguish Evil Debt Forms : There are essentially two kinds of debt. The good one is the kind of debt with which the item that caused your debt can be sold and the proceeds can help you repay the debt. The bad one is a loan that has a diminishing value.

An example of a good debt is a home loan, that is if such home loan, particularly a home equity loan will add value to your home. But if you acquire such loan for unnecessary items, you are doomed. An example of a bad debt is clothes, unless you're a celebrity of course, where you can auction off your clothes when you get tired of them.

School loans are not advisable either because it will most likely be hard for someone to pay off his or her debt even after landing a good job because there are various expenses that will arise when working life starts.

So, how do you stay debt-free or at least be able to manage your debts well through the above mentioned information? The answer is simply to avoid bad debts!

But none of this is possible without taking the first step. Start by tracking your spending habits today and adjust your moves to meet your debt-free life goals. And a good dose of self-discipline will help you to breeze through it!

Now click this link for the next part of our free debt relief guide which focuses on Saving Money.