Getting out of Debt: Do G.O.O.D.
Getting out of debt is the #3 goal Savers select when they pledge to save. That does not come as a surprise since a 2012 survey showed that 45% of families with annual incomes under $50,000 rely on credit cards to pay for basic needs such as rent, utilities, insurance and food. Large consumer debts can also keep you from saving and building wealth.
The good news is that there is hope. With planning, discipline, patience, and maybe some outside help, almost anyone can reduce their debts and start to accumulate wealth.
Are you in Trouble?
If you answer “yes” to any of the following questions, then you probably need to get your debts under better control:
- Can you only afford to make minimum payments on your credit cards?
- Do you worry about finding the money to make monthly car payments?
- Do you borrow money to pay off old debts?
- Have you used a home equity loan to refinance credit card debts, then run up new revolving balances on your cards?
What is Debt and Why is Too Much Debt Costly
Debt is the single biggest financial problem people struggle with in their financial lives. Using debt when you do not have the right financial discipline to take advantage of its benefits without falling prey to its detriments is very dangerous. Sadly, because of our high consumption culture, so many people fall into the arms of debt because they are trying to project a version of themselves that they believe is an expectation of their culture.
You may be reading this and saying to yourself, “I am not the kind of person who spends endlessly on handbags, shoes, or clothes. I don’t spend money endlessly on gadgets, so I am not part of the consumption culture.” Well, if you have a problem with debt—that means that you have debt outside of student loans —then you are part of that consumption culture and need to reexamine your priorities.
In order to do G.O.O.D, your goal should be to Get Out Of Debt as fast as possible.
How? We know this is not a simple process which does require Desire, Focus, Accountability, and, Consistency. We have a simple strategy through The Wealth Cycle that is a proven process. Let us partner with you to show you how.
