Debt Elimination Starts By Recognizing Financial Mistakes

2007-09-03T00:45:00.001-07:00

Im constantly looking out for debt elimination tips. It is a topic of interest and importance for all, especially homeowners. Unfortunately, yet humorously, most homeowners look at the process of debt consolidation like this:

Now, that can be your end result, but to get there, some actual factual things need to take place first. Dont just go chopping up your credit cards and other debts until theyre actually taken care of, i.e. paid off.

I came across an article dealing with just this topic in the August edition of the Lansing State Journal.

According to the article, despite what may be going on now or has gone on in your personal circumstance "It's never too late to get on a pattern of debt reduction or debt elimination," Salmeron said. "It's never too late to start saving or save more when you know you should have."

Most consumers feel that once theyre down a certain road, even a little bit, its over - thats it, no point trying, throw in the towel and live with the debt, managing it the best they can, getting used to the thought of money problems. Its unfortunate people think like this, but is is understandable, because the dark cloud of debt really can be overbearing.

But, with a little bit of forethought, focus, and a realistic, honest outlook at what you may be doing that is not working, it is not as difficult to make it through the process of debt elimination as it may at first seem.

The article in the Lansing State Journal goes on to list a number of common financial mistakes you should change, and here is how its broken down:

#1-"Not having a goal and a plan for how to achieve it"

#2-"Not paying off your credit card debt each month"

#3-"Making only the minimum payment on credit cards"

#4-"Failing to save at all or to save enough"

#5-"Not having any or enough life insurance"

#6-"Overinvesting in company stock"

#7-"Letting emotion drive your investment decisions"

Here is a link to the article.

Let me know what you think, because checklists like these can really help to ease into a successful debt elimination plan.

Craig