Get Rid of Bad Debt

Not all debt is bad. Therefore we have to determine first if our debt is good or bad.

If we understand the concept of assets and liabilities, we can then determine if a debt is good or bad.

Good debt is anything that puts money in our pocket. Bad debt is anything that takes away money from our pocket.

If we understand this simple explanation, then we can take the next step. The step to accept that we put ourselves INTO IT (having bad debts). So that we can also take a step to acknowledge that we are the one who can also put ourselves OUT OF IT.

Recommended Steps to Eliminate Bad Debt:

• List all your bad debts with its corresponding interest.

• Put a priority level no. 1 to the highest interest down to the lowest interest.

• Look for freedom fund. Freedom fund may come from your savings that yields a lower interest than your debt. Or it may come from selling the things you are not using anymore. Or from unexpected income that you receive. Use it to pay for your debts right away.

• Don't procrastinate.

• Do not borrow bad debt ever again.

Spending is a habit, so is borrowing. If we cannot afford something for now, then wait until you can afford it rather than using your credit cards or taking out a loan.

We have to change our attitude toward borrowing money. We have to tame our "I want it, now!" attitude. Instant gratification won't really last long specially if we putting ourselves into bad debts.

We have to take charge before bad debt control our life and our future.

Free your self,