Eliminate Your Debt An In Depth Guide

By Dean Foster

We hear it all the time on the news – being debt-free is impossible, we have to settle and make peace with the fact we'll live paycheck to paycheck for the rest of our lives.

 

Who are they kidding?

 

The fact that Western society normalizes debt does not mean you have to lead your life drowning under credit card sums, bills, loans and unsurmountable expenses.

 

It's time to say "enough!"

 

It's time to master the wealth secrets rich people don't want you to know.

 

One of these secrets is that your money should be working for you and not the other way around.

 

Yes, that's possible even if you have a lot of debt to pay off.

 

The financial industry wants to keep you in debt because it's making money this way. That's why loans and credit cards are heavily advertised, even depicted as desirable and profitable. You are led to believe that you need a ton of things (and a ton of loans) to be happy, to be fulfilled and to find meaning in your existence.

 

This has to end RIGHT NOW!

 

Are you up to your shoulders in debt? I know that you probably are giving your computer a resounding "yes" as an answer. After all, that's the Western way of living, isn't it?

 

Do you want to get out of debt? Do you want to gain the comfort of knowing that your future is financially secure? Then listen up!

 

In Eliminate Your Debt, you will discover:

 

• The shocking amount of indebtedness that the average American faces and the main reasons why such disastrous habits have become normalized
• How the debt cycle will make you drown under the financial burden of one loan after the other
• Why 189 million Americans have a credit card and why you should stop being one of them
• 7 ridiculous debt myths most of us still believe
• 8 reasons for people to be in debt – you will 100% recognize yourself in one of the categories
• The 7 best approaches to eliminate debt forever and start rebuilding your wealth
• Reasons why investing even 5 dollars per month is an excellent start
• What should you invest in – stocks, bonds, gold: an introduction to the best investment tools
• Ways a trickle can turn into a money torrent, if you stick with your strategy long enough
• Your financial goals aren't ridiculous: the best ways to make them happen

 

And much more!

 

You don't need financial knowledge to get out of the vicious cycle and to start profiting from your income.

 

Even if you're on the brink of bankruptcy, you can get back on your feed. Start tackling debts one by one until you finally emerge victorious.

 

A bit of discipline really pays off. Getting rid of one debt at a time will soon free up enough resources for you to start dreaming about the future once again.

• Language: English
• Publisher: Alan Newton
• Release date: Apr 11, 2023
• ISBN: 9798215033173

Book preview

Eliminate Your Debt

The In-Depth Guide on How to Make Money Work for You

Dean Foster

© Copyright 2020 - All rights reserved.

The content contained within this book may not be reproduced, duplicated or transmitted without direct written permission from the author or the publisher.

Under no circumstances will any blame or legal responsibility be held against the publisher, or author, for any damages, reparation, or monetary loss due to the information contained within this book, either directly or indirectly.

Legal Notice:

This book is copyright protected. It is only for personal use. You cannot amend, distribute, sell, use, quote or paraphrase any part, or the content within this book, without the consent of the author or publisher.

Disclaimer Notice:

Please note the information contained within this document is for educational and entertainment purposes only. All effort has been executed to present accurate, up to date, reliable, complete information. No warranties of any kind are declared or implied. Readers acknowledge that the author is not engaged in the rendering of legal, financial, medical or professional advice. The content within this book has been derived from various sources. Please consult a licensed professional before attempting any techniques outlined in this book.

By reading this document, the reader agrees that under no circumstances is the author responsible for any losses, direct or indirect, that are incurred as a result of the use of the information contained within this document, including, but not limited to, errors, omissions, or inaccuracies.

Table of Contents

Introduction

About the Author

Chapter 1: Why You are Stuck in a Debt Rut

The Debt Cycle

Breaking Out of the Debt Cycle

Living on Borrowed Money

Credit Cards Offer Increased Temptations of Spending Beyond Your Means

Interest Rates are Silent Killers

Credit Card Transactions are Instant Debts

Spending Borrowed Money Makes it More Difficult to Keep Track of Your Finances

An Ongoing Struggle with Debt Culture

Chapter 2: Good Debt, Bad Debt, and Other Money Myths

Not All Debt is Created Equal

How Do You Know if Debt is Good or Bad?

How Do You Know if You Have Too Much Debt?

Examples of Good Debt

Student Loans

Mortgages

Home Equity Loans

Small Business Loans

Examples of Bad Debt

Car Loans

Payday Loans

Credit Card Debts

Be Smart About Your Choices

Debunking Myths About Money and Finances

Myth: It’s Not a Big Deal to Skip Payments

Myth: Credit Cards for Retailers are a Good Idea

Myth: If You Die Unexpectedly, Your Family Will Have to Take on Your Debt

Myth: Carrying a Balance on Your Credit Card Will Improve Your Credit Score

Myth: Your Bank Won’t Help You if You Can’t Pay Off Your Debts

Myth: Making Just Minimum Payments on Debts is Okay

Myth: Student Loans Expire and Become Void After a Few Years

Myth: You are Only Accountable to Half of Joint Debt

Myth: Paying Off Your Debts Will Instantly Give You a Perfect Credit Score

Myth: All Debt is Bad and Credit Cards are the Devil’s Toys

Myth: Lenders Won’t Give You Debt That You Can’t Pay Back

Myth: Emergency Funds are Unnecessary When You Have Credit Cards

Myth: You Inherit a Person’s Debt When You Marry Them/Your Joint Debts Become Separated if You Divorce

Chapter 3: How Did You Get Here? Where Has All Your Money Gone?

You Indulge in Overspending

You Succumb to Peer Pressure

You Don’t Invest in Medical Insurance

You Don’t Engage in Active Saving

You Spend Money You Don’t Have

You Believe that Staying in Debt is Normal

You Don’t Pay Your Bills On Time

You Don’t Make Smart Investments

You Go Through a Divorce

You Only Have One Revenue Stream

You Don’t Follow a Proper Budgeting System

You Just Lack a Grasp of Fundamental Financial Principles

Final Thoughts

Chapter 4: The Best Strategies to Get Out of Debt

Avoid Taking in More Debt

Pay More Than the Minimum

Debt Consolidation

With a 0% Interest Credit Card

With a Fixed-Rate Debt Consolidation Loan

Other Forms of Debt Consolidation

Is Debt Consolidation Right for You or Not?

Debt Settlement

Debt Snowballing

Step 1: List Down All of Your Debts

Step 2: Plot Your Payment Scheme

Step 3: Repeat the Snowballing Method Until All Your Debts are Gone

Debt Calculator

The Art of Renegotiation

Balance Transfers

Practice Responsible Credit Card Usage

Diversify Your Revenue Streams

Make Use of Budgeting or Money-Saving Tools

YNAB or EveryDollar

Personal Capital

Mint

Clarity Money

Google Spreadsheet/Microsoft Excel

Get Rid of Non-Essential Subscriptions

Cut Down on the Luxuries

Chapter 5: The Simple Secrets to Staying Out of Debt

Embrace Frugality

Be Strict with Budgeting

Stick to a Shopping List

Be Open to Talking About Your Finances

Be Honest With Yourself

Don’t Buy Anything You Can’t Pay Off in 30 Days

Find Someone to Keep You Accountable

Make Prompt and Timely Payments

Build Your Emergency Fund

Chapter 6: Starting Your Savings - The Real Secret of Making Money Work for You

Build Your Investment Fund

Research on Different Investment Options

Savings Account

Certificates of Deposit

Stocks

Bonds

Mutual Funds

Consider Micro-investing

Conclusion

References

Introduction

Money is a sensitive matter to plenty of people. In a lot of households, talking about money among family is still incredibly taboo. Much like it is with topics of sex, politics, or even religion, most people just tend to be very sensitive when it comes to talking about their financial philosophies. Perhaps, this is partly to blame as to why so many people find themselves in financial ruin right now. There are all sorts of global issues that surround money and finance such as poverty, income inequality, wage gaps, and the like. Obviously, the only real way to address these problems would be for people to start being comfortable with talking about money. A lot of it stems from the fact that people just tend to have a very poor relationship with their finances overall. This poor relationship can lead to the practice of poor financial habits that definitely won’t bode well for them in the future.

While there are many forms of financial problems that are continuously troubling the world at the moment, this book is going to focus more on grassroots financial issues. In particular, this book will be taking a deep dive into the increasing debt problem among individuals in the United States. If you are reading this book with a vested interest, it might be safe to assume that you are currently in debt and you’re trying to get out of it. It could also mean that you’re not in debt and you’re doing whatever you can to make sure that you don’t get into debt in the first place. Whatever the case, the knowledge that will be highlighted in this book will be sure to help you out in stabilizing your finances. Financial security is something that everyone should be aiming for regardless of income brackets or social backgrounds. There are very few things in this life that feel as good as going to sleep at night knowing that you’re financially secure for the next ten, twenty, or thirty years and on.

In order to be truly financially secure and independent, you have to make sure that you aren’t living paycheck to paycheck and that you are amassing a sizable savings fund. However, that is very difficult to do when you’re paying off debt. It might seem like a huge bulk of the money that you earn every month just goes to paying off any accrued debts that you might have. Then, whatever cash is left behind goes to sustaining yourself and your monthly expenses. This means that there is very little money left behind for padding your savings account. First of all, no need to worry just yet. Panicking in a situation like this is not going to do you any good. If this is similar to what your daily life is like, the very first thing that you need to do is develop a game plan. The ultimate goal here is to secure financial freedom and independence. In order to do that, you have to develop a system for yourself to eliminate your debt. This is exactly what this book is going to try to help you out with.

Make no mistake about it. There is a very real and very serious debt crisis going on. According to an article published by Lexington Law in 2020, the Federal Reserve reported the total consumer debt within the United States reached just under $4.2 trillion in late 2019. Additionally, the average American citizen owes around 10% of their disposable income to paying off car loans, credit card debts, and student loans. This doesn’t even include the amount that is dedicated to paying off mortgages. In that same article, it was mentioned that the average American income has been on a steady increase since 2013. However, in spite of the increase in income, American consumers have also been increasing their debts and loans throughout that span.

It might not make sense, right? If people are earning more money, why is it that they’re borrowing more money too? Well, the answer is rather simple. It’s all about psychology. A lot of people mistakenly think that fiscal responsibility is mostly about the pluses and minuses in a balance sheet. However, that’s not necessarily the case. This is evidenced by the fact that people are putting more money into their pockets and are still losing it at alarming rates. It’s more about human psychology and the lack of understanding of basic principles surrounding financial management. Even simple concepts like lifestyle inflation, emergency funds, and asset allocations are