Get Out of Debt
The economy is healthy, unemployment is down, wages are up, spending is strong…..too strong perhaps.
Last quarter, total household debt rose by $219 billion to a record high $13.5 trillion. Seems like our households are following the poor example of the US government which just went over $21 trillion. The Concord Coalition warns that US Debt is unsustainable….take a look at their forecast chart through 2048:
Debt is a weakness that drains the life out of any budget no matter how large or small. Getting out of debt is not going to happen without a plan that is supported by both husband and wife in a marriage. Working together to get out of debt can serve to bring a couple closer together. Debt uncontrolled can lead to very harmful consequences. Many believe that money problems is the leading cause of divorce. This much we know, debt can cripple financial freedom to the point of slavery if it is not resolved. Debt wars against financial independence. So how do we get rid of it?
1. Identify the problem. Many couples do not know their balance sheet of assets and liabilities. You need an x-ray of your finances to determine your financial condition.
2. Create a spending plan. Begin to manage your money so that you know where it is going. If you are spending too much, you need to hit the brakes.
3. Spend less than you make. This is the cardinal rule for success. The difference between what you make and what you spend is either debt (if your outgo exceeds your income) or margin (money available to reduce debt and later to fund savings/investments).
4. Stay in financial discipline to become debt free.
All of this can be learned through Financial Peace University. If you need to tackle this area, there are very encouraging and specific steps you can take to change things around. Learn 9 lessons that teach you how to find financial victory!