How to Live Debt Free

A life without debt can seem a far-reaching dream in today's world of loans and credit cards, where Americans are accruing more debt than ever before. Imagine the freedom you'd feel living a life without any debt: owning all that you have, spending only what you have, and owing no one but yourself. The concept may seem unattainable, but it is possible. Follow these steps.

Instructions

Difficulty: Moderate

Things You’ll Need:

• Bank account balances
• Organized debt records

1. Live by this powerful rule: if you can't afford it, don't buy it. It may seem easier said than done, but you'll be patting yourself on the back later if you live this mantra.
2. Save up for big purchases. Living completely debt-free means no loans, even for major purchases such as homes and cars. Steadfast saving and living without certain luxuries are a must to pull this off.
   
3. Pay off existing debt. Work with a credit-counseling organization if the task seems too big for you to handle alone.
   
4. Feel empowered, not punished. To live without debt is the freedom of relying on only yourself and owing no one anything. It can require a change in lifestyle, but if your priorities are in the right place, you'll feel positive and energized.
5. Seek out a friend or family member whose saving perspective allows them to live debt free. Ask them for tips and ideas on how to make this transition.
6. Be patient. In a world of instant gratification made possible through plastic cash and instant loans, you must wait and save before you acquire the new items you desire.

Tips & Warnings

• It is a big undertaking to rid yourself of current debt and put a stop to it in the future. Expect to find financial challenges along the way. If you're committed to managing your finances properly and understand the benefits you will reap, you will get there.
• Never place purchases on a credit card if you cannot pay the balance, in full, every single month. The dollars spent in finance fees and interest could be potential savings for you.