2013년 11월 28일 목요일

About 'outstanding debt'|Collecting your outstanding debt







About 'outstanding debt'|Collecting your outstanding debt








Living               debt-free               has               got               to               be               a               major               priority               for               anyone               who               wants               to               live               a               liberated               life.

As               a               former               registered               financial               advisor,               I               saw               this               reality               writ               large               in               my               professional               experiences,               and               even               later               on               when               I               specialized               in               getting               people               new               home               loans               for               the               sake               of               debt               consolidation               or               other               ways               to               save               money               on               their               monthly               payments.

Since               those               days               I               have               continued               to               study               financial               and               economic               matters               for               my               own               purposes               and               "debt               free"               is               still               a               mantra               to               me.

Needless               to               say,               for               most               people               it's               just               not               always               possible               to               achieve               desired               financial               and               personal               goals               without               acquiring               some               debt.

There               are               right               times               and               circumstances               for               taking               on               mortgages,               home               equity               loans,               credit               card               debts,               business               loans,               and               so               forth.
               But               what               strikes               me               is               just               how               careless               the               typical               adult               is               about               taking               on               debt.

Debt               is               like               violence:               although               there               is               a               right               time               and               place               for               it,               it               actually               needs               to               be               avoided               save               as               a               final               resort               when               all               other               ways               fail.
               Just               think               of               all               of               the               fees               associated               with               credit               cards               and               even               many               debit               cards.

(Debit               cards               are               not               really               debt               instruments,               but               you               understand               about               the               fees               I'm               sure.)               Just               think               about               all               of               the               interest               that               you               need               to               pay               on               any               outstanding               debt.

Interest               is               charged               on               loans,               incidentally,               as               compensation               to               the               lender               for               delayed               consuming.

It's               really               a               fair               deal,               overall,               but               that's               just               a               finer               point               of               economics,               and               the               bottom               line               for               you               as               the               borrower               is               that               you               are               tied               to               this               debt               and               to               these               payments.

Every               dollar               you               spend               on               interest               payments               is               a               dollar,               presumably               earned               through               your               working               efforts,               that               you               no               longer               possess               to               spend               on               consuming               or               investing               .

The               fact               is               that               debt               interest               payments               benefit               absolutely               no-one               except               for               the               lender.

Credit               card               fees               and               similar               types               of               fees               also               benefit               no-one               but               lenders.
               Lenders               serve               a               useful               and               necessary               role               in               our               society,               but               they               are               like               fast               food               restaurants:               their               authentic               roles               are               limited,               but               people               get               hooked               into               grossly               overusing               what               they               provide               to               the               detriment               of               their               own               health,               wellness,               and               finances.
               Ways               to               a               Debt               Free               Life
               Get               deadly               serious               about               paying               off               any               and               all               debts               that               you               have               right               now,               even               your               mortgage               if               you               have               one.

               Consolidate               your               credit               cards               if               you               have               more               than               one,               and               get               rid               of               all               except               one               of               them.

You               only               need               one               (per               adult               person,               per               household,               that               is.)               Consider               a               debt               consolidation               mortgage               refinance               if               your               circumstances               are               right               for               one.

This               won't               eliminate               all               of               your               debt               right               away               but               if               done               right               it               will               save               you               significant               money,               and               it               will               put               you               on               the               right               road               to               full               debt               elimination.

Never               borrow               money               in               order               to               invest               it.

Absolutely               never.

Absolutely               never               use               your               credit               card               except:               for               emergencies;               or,               for               times               when               you're               short               on               cash               but               you               are               utterly               certain               that               you               will               be               able               to               pay               off               the               charged               amount               in               full               as               soon               as               the               bill               comes               in.

Consult               a               certified               financial               advisor               or               planner               and               open               up               a               money               market               account               and               an               index               fund               as               an               investment.

With               the               help               of               your               agent,               get               disciplined               about               putting               the               same               amount               of               money               (as               a               minimum)               into               these               accounts               each               month               or               with               every               paycheck.

You               see,               money               that               you're               investing               and               saving               is               money               that               you               can't               go               into               debt               with,               and               it's               money               that               is               actually               earning               you               more               money               instead               of               costing               you               more.


Don't               a               borrower               be!

Don't               forget:               stay               out               of               debt!






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