Managing Your Debt

My first husband went bankrupt. I was lucky, his lawyer would not let him declair bankruptcy without including me. This was the best decision, because I was clear and building wealth within a few years. He married a woman with her own house, and now they are sinking in debt.

One of the first things I did was take Debt Management courses. I took one on budgeting, and one on building wealth/debt management. Until that course I did not know that the two went hand-in-hand.

Most people don’t know that if they get out of debt, they can build wealth. In fact, the average American pays more than $5000 in interest a year on personal loans and credit card debt. That is $50 000 plus interest every 10 years. Or, to put it another way, it cuts more than a decade off the length of your mortgage, which reduces the mortgage interest, and builds more wealth.

There are some ways to stay out of debt. First, is to cut up the credit cards. Second is to pay down debts before saving. The interest on a credit card is higher than the interest on most safe savings and investments. This means that you are actually losing money by trying to save while you owe money on credit cards.

Take the time to learn how to pay down your debts, and build wealth. You’ll be glad you did.