How to Eliminate Debt
Debt has become part and parcel of many American’s lives. Since World War II, household debt in the U.S. has increased, and now it is considered the norm.
In 2018, Americans' credit spending was bigger than ever before, and we saw record highs. Overall consumer debt reached $13.3 trillion! Americans owed an all-time high of $834 billion to credit card companies. Student loans have been steadily climbing over the last decade. The average amount owed has increased by 78 percent over the last ten years. Personal loans and mortgages were at all-time highs in 2018. 60 percent of Americans have a credit card, and 32 percent have an auto loan.
How do you get rid of debt, and take back control of your finances? Here are two tips to help you get rid of your debt for good:
Buy Within Your Means
If you cannot afford to buy something, don’t borrow money to do so. Buying a fancy car isn’t necessary. You only need transportation to get you to and from places, and that might not even be a car. People in Europe and Asia ride scooters, and in Thailand, whole families travel on a scooter. That would save you money on gas, insurance, and a whole host of benefits. Of course, if you have to travel to work by freeway, that is not an option. You could also buy a used car rather than a new one or use the bus, train, or subway if you have access to those.
Financial Plan
Work out your expenses, and figure out ways to cut costs and save. As an example, Millennials spend an average of $2,000 every year on coffee alone! Growing your own vegetables also will save you hundreds of dollars a year. Cutting out frivolous costs will help you to set money aside for things that are important, and pay down your debts and eventually be debt-free.
Living debt-free isn’t easy, but it is possible. If you set your mind to it, this can be achieved faster than you might think.
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