NO, You DO NOT Need to Sacrifice Your Lifestyle To Get Out Of Debt!

Once upon a time, the ONLY way people knew to get out of debt was to cut back, eat beans and rice (or whatever cheap/bulk food you could eat), drive a rusty Chevy until it died, and forego any kind of entertainment or vacations until all the consumer debt was paid off.  In other words, it took SUFFERING to get there.  Thank God, that's not the only way anymore. 

 

Debt elimination is one of those things that is gauged on any effort in the right direction at all.  Chiseling away at debt is always a good thing no matter how long it takes to get there.  Some people buy into concepts that teach you to sacrifice a LOT in order to chisel away at debt with the money you're no longer spending on luxury items like groceries and date nights.  Some concepts teach you to focus on your smallest debt first, and once that is paid off then you move onto the next debt until FINALLY, you begin to address the mortgage...the biggest and most volatile debt of...

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Do You Seriously Believe That Real Estate Will Always Climb? Think again!

No doubt real estate is a great investment, but long-gone are the days where prices soared overnight....a time when even a blind monkey could make a quick dollar on a good flip.  But what happens when prices don't soar like you thought they would?  Worse yet, what happens when they drop?

What goes up, must come down...including real estate, and it's for this very reason that it's a good idea to build your own equity as fast as you can instead of waiting for the market to build it for you.  The idea of bringing money to the table to sell a house may not be familiar to YOU, but it's a common occurrence for people in need of selling when the market hasn't produced the gain sufficient to cover the cost of selling and/or closing.  

People investing in the stock market understand that what goes up must (eventually) come down, while people investing in real estate never expect to get caught short.  The stock market "resets" itself and the real estate...

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Robbing Peter to Pay Paul - Yep, That Sums it up!

To rob Peter to pay Paul means to take money from one source to give it to another. Usually, robbing Peter to pay Paul means taking the money to pay off one debt to pay off another debt.   Basically, It is a situation where there is not enough money to go around and one must choose which debt is more urgently in need of payment.  Yep, that pretty much sums up the way most Americans are managing their finances these days!

I'm not sure how it happened, but somehow people see debt as a good replacement for cash; in this case, the abnormal has become the norm.   They'll open a new credit card account with a better interest rate to pay off another, and before you know it both cards are maxed out because they couldn't resist using plastic when they wanted to spend what they didn't have - they Rob Peter to pay Paul. 

Most people refrain from adding anything to a savings account for "a rainy day" as long as they have a little room on a...

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