Can You Find Financial Freedom? Debt Management Shows You How!

With today’s depressing economy, millions of people are up to their ears in debt. From the rising cost of fuel to the highest unemployment rates since the Great Depression, people simply do not have the money to pay their bills. People want financial freedom. Debt management may be the answer. However, many people are simply at a loss of where to begin. In their quest for debt freedom, debt management may seem like a long process that has no foreseeable end. The truth is, when you use the tools of debt management correctly, you can find relief.

The stress of bill collectors calling or stopping by your home builds quickly. You stop answering your phone, you do not want to see the mail, and you probably feel like the weight of the world is on your shoulders. In order to find the financial freedom, debt management must be approached correctly. You must know you have made the decision that freedom – debt management – is worth the trouble, time, and headaches that it will invariably become. However, once you feel as thought you have your bills under control, you will find that financial freedom. Debt management is set up so you can pay your bills, reduce your balances, and teach you new ways to control your spending.

The first thing you will learn is the difference between a “need” and a “want.” Unfortunately, your family may not necessarily agree with what they need to have to survive and what they want to have to enhance their lives.  When you finally earn financial freedom, debt management will come easily enough. However, when you first start down that road, it is pretty bumpy. You may meet with some resistance from your family if you decide to make a few changes in how money is spent; especially it has never really been an issue before. However, to get to complete financial freedom, debt management is essential.

Creating a budget is one of the most important steps in getting control of your finances. However, it is not enough just too simply write down a bunch of numbers. When you get to the point where it is a workable budget, you must be willing to stick to it, even if it means doing without some of the things that you are used. For example, do all five members of your family, children included, need their own cell phone? Simply cutting down to one or two phones could save you as much as -0 a month. You may think that will not even make a dent in the amount of debt you owe, but it’s part of the true path to freedom. Debt management involves saving every penny you can. Each little bit will help.

In closing, the key to financial freedom – debt management – takes time. It takes sacrifices, perseverance, and a commitment to a debt free life. If you think that it is easy, think again. If you think you will not ever reach financial freedom, debt management makes it possible. 

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There are many unpleasant effects of having bad credit, all of them really suck. I wouldn’t wish them on anyone, and if you have bad credit then you likely know most of these, or maybe not. If you are wondering what the big deal is about bad credit, then read this list.

1. Sky high interest rates on credit cards, loans, and every other form  of credit

2. Getting turned down for a job that does background checks, and they are doing many credit checks these days to see if someone poses a theft risk.

3. Difficulty finding an apartment because of credit checks.

4. Marriage. Yup, I know it sounds weird but who wants to marry someone who has a horrible credit rating if they themselves do not? Nobody, of course. When you marry, your individual credit scores remain in tact, BUT any credit that you and your spouse apply for together (like a mortgage) will be negatively affected by the bad credit rating of the other spouse. Yes, it is the love that is important, but in reality, money will dictate your quality of life. I have heard of many couples staying engaged forever or at least until the one with bad credit fixes up their finances.

5. Cell phone. Prepaid sucks doesn’t it? Yes, it does. If you have a bad credit score then you can forget about getting a normal cell phone plan. They will either ask for a large security deposit, which they hold in case you default on the bill,  or just decline you outright. Then you have to deal with prepaid minutes and not being able to make a call at the one time you need to, yes it always happens that way. Anyone who tells you prepaid is the way to go probably has bad credit. Avoid this whole prepaid scene if you can.

6. Getting the lights and heat turned on. Yup, utility companies now routinely check your credit when you apply for new service. They may require you to put down a large security deposit just to turn your lights on. Nice, huh?

7. Car insurance. You will have higher premiums if your credit sucks, they check it when you apply. The amount might not be exorbitant, but it will be an amount nonetheless.  Every cent counts when you are dealing with living expenses, save wherever you can.

8. PHONE CALLS! Millions and millions, and millions, and millions of phone calls from debt collection agencies. Depending on what state you live in, these toe fungi call you from the minute you wake up to the minute you go to bed. They will find out where you work and then start calling there, and depending on where you work this may cause quite a scene. They want to embarrass you, they are the scum of the earth, and they figure that you will get so sick of calling that you’ll come down and either shoot them or pay the bill.

* Please, no comments about how the debt collectors are nice and just doing their job, and the person in the wrong is the deadbeat not paying their bills. True, you are to blame for not paying your bills, USUALLY. Sometimes though, circumstances prevent someone from working, such as an injury or illness. These people don’t need some 4th grade dropout telling then that they better pay up or else. They need a break, some compassion would be nice.

9. Education. Most kids don’t get full scholarships to go to college. They have to go the old fashioned route, and pay for it. Most kids don’t have twenty grand laying around, so they need to get a student loan. If you are the student and have bad credit, you will likely be declined. If you want a school loan for your own kid, then you will likely be declined if he requires a co-signer. That would really suck right? Yes, it would. Credit lenders are targeting young people, even teenagers, to acquire all forms of credit. They want to hook the kids while they’re young, and make them pay a lifetime of interest. Sad, very sad.

10. Quality of life. Because of all the nine previous items, and many others, your overall quality of life will suffer if your credit is poor. If you have bad credit now, make a commitment to yourself to map out an attack plan for improving your credit. The sooner you take that first step to being debt free, the quicker it will actually happen.

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