I heard a great discussion today on the Dave Ramsey show about a couple who managed to get out of debt and reach a level of financial security.
The most important part of the story was how they described struggling month in month out, and finally realizing the situation they were in. Many of you may be in the same situation of living paycheck to paycheck. No real savings, paying all the bills on time including credit cards, student loans, car loans etc…. At some point this couple decided they had had enough. They finally became fed up of being held ransom by somebody they were in debt to.
That point in time is different for everybody. Until that point, you are paying somebody else money that they have ‘loaned’ to you. Maybe it’s 20% on a car loan, 24% on a credit card, or another amount. Once you realize that by being free of debt, you are effectively saving money at that same rate, the light bulb may come on.
Read some of my other blogs on how to start paying down that debt and then how you can start saving a little more every month.