Debt-free living isn't something that the banks and finance companies spend a lot of time discussing. It's easy to understand why: loans and credit cards is what makes them money. If everyone paid off their credit cards on time and had no outstanding loans (except perhaps for a house mortgage) then their business would be crippled.
But few people worry about debt these days. There's no cultural impediment to getting a loan anymore. People happily and laughingly discuss their credit card balances with friends and family. It's all viewed as normal. But not so long ago it wasn't normal. Loans were available, yes, but only if you had a hard asset -- a car or a house -- to use as collateral. But debt use is much more casual these days. How many people send themselves on vacation now using borrowed money?
Finance companies make it so easy to get into debt, of course. How many credit card offers with "low introductory rates" have you received in the mail over the last year? How many times has your bank offered to extend you a line of credit based on the equity in your home, even though you haven't paid off your mortgage? How many car companies have offered you low-interest or even no-interest financing in order to get you into one of their vehicles?
Don't follow the crowd and wallow in debt, however. It's hard to live free of debt, but it brings many advantages. The biggest advantage is that it brings peace of mind. When you live within your means and avoid large debt repayments, you'll live a better life. You'll be happier, your family will be happier, your friends will be happier. You'll sleep better. You'll feel better!
It's not easy to switch to a debt-free lifestyle, but it can be done. You start by not incurring more debt -- live within your means by paying with cash and not buying things you can't afford. Then you eliminate your existing debt by freeing up some money and aggressively paying down you debt using the "debt snowball" method.
Once you're debt-free, stay out of debt for the rest of your life. The only exception is your house, since it's nearly impossible to buy a house these days without a mortgage. But do everything you can to pay off the house in a short a time as possible.
It'll take some effort to eliminate your debt, but the way you'll feel once it's gone will make it all worthwhile. Debt-free liiving used to be the norm, but it's a lost art these days. Do your best to recover it!
