Paying_Off_Debt by paydot888

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									Paying Off Debt

Word Count:
436

Summary:
The Debt I refer to here is Consumer Debt that is linked to the
acquisition of lifestyle comforts, whims or desires.

This type of debt can really leave you with economic insecurity and a
limited financial future is best avoided. Entering into debt for business
reasons or to accumulate assets is often necessary and indeed wise as
long as it is part of a well thought out Business Plan or Investment
Strategy.

How start Paying off debt.

If you have any non-mortgage debt,...


Keywords:
paying off debt ,debt free living,credit card debt,debt free


Article Body:
The Debt I refer to here is Consumer Debt that is linked to the
acquisition of lifestyle comforts, whims or desires.

This type of debt can really leave you with economic insecurity and a
limited financial future is best avoided. Entering into debt for business
reasons or to accumulate assets is often necessary and indeed wise as
long as it is part of a well thought out Business Plan or Investment
Strategy.

How start Paying off debt.

If you have any non-mortgage debt, loans, credit card debt etc. take 10%
of your income and use it as an extra resource towards paying off debt.
Get those debts paid down as quickly as possible because each day you
have them they cost you more and more money, unfortunately this the
wonderful principle of compound interest working against you.

Paying off debt could be the best investment you ever make.

Although you are paying off debt, if you look at it another way you are
really making an investment. It may also prove to be the best investment
you ever make.

For example:

If you have credit card debt and the interest rate is 18% per annum and
if you pay it off, you are saving yourself having to pay out that extra
18%; which is just the same as getting an exceptional return of 18% on an
investment.

Frightening non-monitory interest.

I have noticed that there is a lot of advice about paying off debt with
the high interest first and even some advocating the paying off debt with
lowest interest first. I suggest that both suggestions are flawed.

The debt with the highest interest has not necessarily got a percentage
after it. What you must pay off is the debt that can cause you the most
harm if it remains unpaid and that could extract a frightening non-
monitory interest.

If you do not pay your rent or mortgage you could be evicted from your
home.

Moneylenders can, via County Court Judgements apply for an order for
Bailiffs to take your possessions and sell them to recover any defaulted
payments.

Prison sentences can be handed out for not paying income tax, council
tax, and child support.

If you have borrowed money from less reputable sources you can be
threatened with violence or worse if you fail to meet their payments.

Chester Bowles (1901-1986) said, “There can be no real individual freedom
in the presence of economic insecurity”

You do not need to be a successful businessperson or entrepreneur to have
a debt free lifestyle that gives you that economic security. Such
financial freedom can all be attained by simply paying off debt.

								
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