How to Find Cheap Housing & Live Debt Free
Choosing to live cheaply and eliminate debt is a goal for many people. Accomplishing this goal, however, depends on your definition of cheap living. Living debt free is simple if you currently don't have any debt, but if you do, you will need to devise a plan to systematically reduce your debt with your current income. Deciding to live in cheaper housing can free up enough money to pay down your debts, but you may have to be willing to move to another town, share rooms, or consider alternative housing.
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Instructions
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Write down your debts and expenses. If you truly want to be debt free, you will have to very honest with yourself in this process. Determine just how much you owe and make arrangements to pay them down. Try and pay them off in full as soon as you can, so that you can live without these burdens.
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Determine your housing needs. If you have three or four kids, deciding to live in a studio apartment, even if it's cheap, isn't going to be practical. However, kids can share rooms, which can minimize space requirements.
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Consider different options for housing. If you live near public transportation, deciding to use a train or bus and get rid of a car may be a more practical idea to live cheaply. If you are alone or live with someone else, you might consider renting a motel room by the week or month. The rent is usually less and the utilities are included. If you are an outdoors person, living at a campground or in a tent or trailer on rented land could be very cheap, especially if you are willing to live without basic amenities like electricity, running water or central heating. These may be conveniences you are willing to give up to live very cheaply.
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Live debt free. Pay cash for everything. Many people who live debt free have learned to save up for items they want, rather than impulsively "buying now and paying later." Many people buy used items just to keep out of debt. There are some personal financial advisors who say that deciding to live without any debt at all is a poor decision. The logic is that if you don't have debt (and therefore a credit history), you can't get a loan for a car or home eventually. However, if you are committed to paying for everything with cash and accepting that you might not be able to get a loan unless you take on some debt, you will be free of that particular burden.
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Tips & Warnings
If you'd like to remain debt free, but would still like the convenience of a credit card (for hotels, car rental or shopping online), consider getting a pre-paid, reloadable Mastercard or Visa. There are many companies that offer them.
