Whether you are already on a plan to pay everything off or you have never even looked at your debts, you are already on a path to becoming debt free someday.
Even if you don’t pay extra on your debts, you will be debt free “some day”. If you stop borrowing money — for cars or vacations or dinner on your credit card — you will become debt free automatically!
Every loan you make, every mortgage you take out you has terms with a payoff date.
• A 5-year car loan is paid off in 5 years
• Credit card debt will get paid off in under 17 years
• Even 30-year mortgage gets paid off in 30 years
It doesn’t matter if it’s a fixed or variable rate, they all have a date for when the loan is paid off.
The reason we don’t get out of debt is because we decide, loan after loan after loan, to stay in debt by taking out more loans. We extend our debt free date every single time we swipe our credit cards.
You are on your way to complete financial freedom the day you commit to stop borrowing money.
What would it feel like to have no payments? A paid for car, paid for clothes, a paid for house?
All you would have to pay for are your monthly bills like food, utilities, gas for the car, and the other necessities of life. How much could you spend on sporting events or vacation? How much could you give?
What would your life be like when you quit a 2nd job because you no longer need the extra income to make the car payment? Quitting the 2nd job would allow you to spend more time with the kids.
You might even be able to consider a different job, one that more closely matches your traits and abilities. It could even be a lesser-paying job but it would improve your quality of life and open up your future to more opportunities. What would that be like?
You are automatically set up to become debt free with minimum payments. It is up to you to decide if you want to extend your debt-free date with more loans or if you want to accelerate the debt free date for one closer to today!
Get serious, attack your debt, don’t be distracted, and pay attention to your money so you won’t pay interest on it!
About the Author:
Steve is America’s Personal Finance Architect on a mission to help everyday Americans design a house of financial freedom. His blog, MoneyPlan SOS, was featured on the Dave Ramsey Show for his article “10 Things We Say That Keep Us Broke”.
Steve’s podcast can be found on iTunes and Stitcher Radio as he coaches us on how to pay attention, not interest.
Find him on Twitter @MoneyPlanSOS.