Debt

“Those who structure their standard of living to allow a little surplus, control their circumstances. Those who spend a little more than they earn are controlled by their circumstances. They are in bondage” (N. Eldon Tanner).

First of all here some simple, yet important points:

-Avoid Debt. In the world we live in, this might seem impossible. Obviously debt from buying a modest home and car is understandable. Sometimes student loans are also unavoidable. Other debt should be avoided when possible.
-Distinguish between Needs and Wants. This is also a hard one in a world that tells us to do what makes us feel good. When making financial decisions though, especially big purchases, it is crucial to decide if it is a necessity or not.
-Use a Budget. See previous post: Financial Self-Reliance.
-Build a Reserve. Even if it's $5 per paycheck, having a little cash on hand is important!
-Teach Family Members. This culture of buy now, pay later has got to stop somewhere. If we can teach our children, other family members, friends, etc. how to live within their means, the next generation will be much better off.
(Taken from All Safely Gathered In pamphlet.)

OK, but what if you are already in debt?

Use a budget! Track your expenses.

Once you know how much you have going where, you can make a plan to eliminate the debt as fast as possible.

Dave Ramsey has a lot of information on getting out of debt. Click HERE for more info. One of the things he talks about is the snowball plan. Check it out!

Also, HERE is a debt planner from CNN.com. This one shows you how much interest you will pay if you only make minimum payments without snowballing. It's crazy how much interest you end up paying!

My husband and I started our marriage in debt. I had a student loan and he had medical bills. Not the best way to start out. We ended up getting into come credit card debt the first few years too. So basically what I'm saying is, that I have dealt with this issue for the last 10 years. Not cool. BUT when we were finally free of the credit card debt, you would NOT believe the relief we felt. It is indescribable! So much better than having stuff.

So take my word...get out and stay out!