When it comes to living, you want to do it in the most comfortable and enjoyable way possible. But, who can enjoy living when at least five days a week, creditors are tying up your phone lines in an effort to collect what you owe to them? Who wants a life where you cannot enjoy it financially because you fear that the little bit of funds you currently have may not be enough to cover necessary expenses? Who wants to live in fear of becoming a permanent victim of financial debt? It is easy to say that no one wants to live a life of financial debt forever, so why not work at a debt free living? Be mindful, in order to have a debt free living, you must be willing to put in the hard effort and determination. Keep reading for more information on debt free living.
The Freedom of No Debt
Debt free living is the most freeing and rewarding thing you can do. You are free to spend your money whenever you choose to, and you do not have to worry about creditors contacting you in need of your hard earned money. Once all of your debt is cleared, you will find that you will have a good deal of money remaining once you have taken care of your regularly monthly expenses. Just think about it: if you have been spending about $1,000 each month to take care of credit card bills, student loans, or other loans, after paying off your debt, you will have an extra $1,000 each month to spend freely. That means a whopping $12,000 can either be saved or spent on something that you want to own or do. However, there is a specific method in making sure that with paying off your debts, you will be saving money and not using the money you already use on your expenses.
When on the road to debt free living, it is best to pay off debt using extra funds, meaning money that is not already meant to cover usual living expenses. When using this method, you will find it easier to consult a debt settlement professional to help you determine how much of your extra funds should go toward settling your debt. With the help of professionals, you could be debt free livingin less than 4 years depending on your amount of debt. Keep in mind, there are a few debts that you will not be able to receive reduced payments for.
- The following debts can be reduced with debt settlement:
o Personal debts
o Business debts
o Debts currently in collections
o Medical bills debt
o Any type of repossession
- The following debts CANNOT be reduced with debt settlement:
o Debts with the IRS
o Student loans
o Governmental loans
o Debts that are secured
o Mortgage loans
o Auto loans
Another great aspect of being debt free is the ability to have more financial freedom because your debt is no longer holding your back. Your credit score improves when you are no longer in debt. A good credit score will make your debt free living even more enjoyable.
On the Road to Being Debt Free
To become eligible for debt free living, there are a few things that you must know. To be debt free means that you will improve your credit score. Using debt settlement helps you to fast-track the recovery of your credit report and score. The typical good credit score is 700 or above. So, you may be eager to get your score in that range. It is true that eliminating debt by settlement could lower your credit score a bit, but in the end, it all works in favor of a better credit score. If you are worried that debt settlement will negatively affect your score too much, consider the alternative before deciding to not go with debt settlement.
Bankruptcy is another common method in eliminating debt. Bankruptcy means that you turn in all valuable possessions and monies to your creditors in exchange for erasing your debt. The process is kept on your public record and on your credit report. Bankruptcy negatively impacts your credit score a whole lot more than debt settlement in that it stays on your credit report for years and years. Many people choose this method because it is easier and do not involve much effort. However, the process is usually more costly.
If you are eager to start your debt free living, consider contacting a financial professional for ways to kick start your journey to living debt free. Whatever they suggest for you, double check to make sure it is the most beneficial tactic for you. All of the hard work and determination will be well worth it in the end.