One of the biggest things people struggle with today is debt.  Whether it’s student loans, a mortgage, a car loan or credit cards it all adds up to having big bills each month which quickly eat through every paycheck.  It can become overwhelming for many people who just can’t seem to make any progress on their debt balances and every time an unexpected event comes up they have to go deeper into debt.  Living debt free is a dream for many people but for most it seems unattainable.  Fortunately, with the right strategy, hard work and focus it is possible for anyone to work their way out of debt forever.

Why Living Debt Free is Important

While it will be a challenge, the reward is worth it in the end.  First, it is important to understand why living debt free is such a good idea.  Many people think that having credit cards and other debt is the only way they can get by but that is not true.  When you purchase something on a credit card because you can’t come up with the cash you are actually just causing yourself more problems in the months and years to come.  Rather than taking the amount of money which you’ll have to pay monthly and saving it up until you can pay cash, they just buy it on credit.

When you buy something on credit you not only have to pay the full price of the item but also all the interest for the credit card as well.  This often adds up to hundreds of dollars over several years.  This money spent on interest is then unavailable for new things which you need so you have to put more on credit.  It is often a downward spiral going deeper and deeper into debt until you are forced to go into bankruptcy.

What Living Debt Free Offers You

While it can be difficult, living debt free can, in the long run, allow people to have much more things that they want and live a much more comfortable life style.  It does, of course, require you to delay the pleasures of buying items for a short time but when you do you can pay cash.  In addition to the money you saved by avoiding any interest payments, people can often negotiate better deals on some things when paying cash.  Buying a car, for example, is a great opportunity for this.  When you go to a dealer with cash (or a cashiers check) you can often save hundreds or even thousands off of the sticker price.  This is savings in addition to the money saved by not paying interest!

Unfortunately, most people believe that having debt is just a part of life and they will never know how to be debt free.  This belief often causes people to be trapped in living their lives from paycheck to paycheck with little hope of ever having a comfortable retirement or being able to buy many of the nicer things they wish they could have.  Delaying purchases for just a short time can quickly lead to a much better over life by living debt free.