Monday, April 15, 2013

Lifestyle And Financial Lies That Can Ruin Your Debt Freedom

Did you know that we could have prevented major financial problems if we only knew how to detect the lifestyle and financial lies that society dictates? There are several instances wherein you could have made the right choice but when you looked at the “norm”, the bad choice seemed like a good idea in the end.

This is actually when you stop looking at what is around you and you focus on what you want to happen in your life. There are various lies that you need to look into as it might be ruining your chances of getting a debt free life.

One lie that you need to be aware of involves credit approvals. When you are offered or approved of a credit limit, that does not mean you should get it. A card with a high limit will only hurt you if you do not know how to manage it. Similarly, if you are approved of a high mortgage loan, that does not mean you buy a home that reaches that amount. While lenders and credit companies look at your capabilities to pay your debt, you need to focus on what you really need. Even if you can afford a 5 bedroom home, do not buy it if you only need a 3 bedroom house.

In connection with that, another lie that aging people are faced with involves buying a home. Some people view home buying as a sign of maturity and financial stability. However, this decision should not be made based on your age. It has to be done with a huge consideration of your financial capabilities and your plans for the future. One thing about debt is it can dictate the type of life that you will live. If you want to pursue a career that is more personally fulfilling and yet low paying, that will not be possible if you have so many debts to pay off.

Another lie that is quite common for young individuals involves their savings. Some of them forego building an emergency fund because they think that they will not need it. They dip into their retirement money since it is a long way off. No one can be sure of what the future will bring but that does not mean you should be careless. While it is right to enjoy life at the present, do not be too irresponsible with it that it comes to the expense of your future financial stability and security.

People also delude themselves into thinking that any financial problem that they have will go away if they ignore it. Ignorance may be bliss but that will not make your problems any better. In fact, it will get worse. You need to think of a debt relief option that will allow you to solve your financial difficulties now.

Be wary of all these lies and make sure that you get a firm grasp of what you want out of your life. If you want a debt free life, then you need to forego life with a credit card as it is a pitfall to get into debt. It’s all about prioritizing what is important to you and trying not to be swayed by the norm in today’s society.

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