There are some families who can maintain their finance in a right manner and remain debt free. Let us say, Family #1 repays off a debt of $40,000 within 2 years, having an annual income of $35000. On the other hand, Family #2 earns $100,000 per year, but is not able to repay off the same amount of debt within the same time.
Now, what can be the possible reason for this difference?
We have understood that the second family has a spending issue that has not been resolved and therefore they are having the debt issues. Though they are able enough to earn a huge amount of money, they are unable in saving. They keep on spending in their cars, credit cards, eat out, mortgages etc and so their debts are never in their control. With this undisciplined lifestyle, the family can never be out of debt and cannot be stress free throughout their lives. There are definitely some debt relief organizations, but they can only cooperate with people who want to help themselves.
Now, what can be the traits of the debt free people? Let us learn a few so that we can improve our lifestyle.
Goal-Driven: People who are debt free are always goal driven. They take the repayment as their goal and get an emotional fulfillment when their goals get accomplished. Setting goals are not enough, you are required to plan enough for being successful in your goal. Small steps can lead to the huge goal of becoming debt free.
Wise: Some people do not consider debt as their tool of buying expensive items as and when desired. They take debt as a disease which is required to be treated as soon as possible. The wise people will never allow their credit score to go down.
Not Materialistic: They are not materialistic in nature. It really does not matter in the long run that you are staying in the eight-bedroom flat or your garage is full of cars. As you are not giving much importance to stuff, you are not accumulating debts.
Confident: If you are confident and know that you are on the right track, getting out of debt really becomes an easy task for you. If you have confidence in your decision and are mentally prepared for adverse situations, you will definitely find financial peace in the long term.
Patient: The debt free people are patient enough to wait for their next big buy. They know that the flat screen TV in the showroom can wait until all the previous debts get repaid.
Responsible: Maturity and responsibility go hand in hand when it comes to repayment. Maturity has nothing to do with age as some 60 year old guys will continue their spending just as a 20 year old guy. But when you are responsible enough to come out of debt as soon as possible, you can easily manage the finance just by a little control.
Ready to Make Sacrifices: People who are ready to make sacrifices can come out of their debt ridden situation very easily. You can avoid eating out or going to the movies every week. As the budget cuts are temporary, you can enjoy your lifestyle when you are debt free again.
Irrespective of the amount you owe, you can definitely come out of debt if you have patience, and the willingness to come out of debt. You should be responsible enough to make sacrifices, and must be confident and goal-driven in nature. If you want financial peace and are passionate enough to become debt free, you will surely find ways to come out of it easily.