I don’t normally write about debt reduction as its not a topic that I have personal experience with (technically, I have a positive net worth) however, prompted by NCN I thought I’d share something I have learnt about reducing debt.
Reducing debt is all in the mind.
One of my siblings left college a few years ago. For several months, they lived with one of my parents without doing any chores, or paying rent. They were onto a free ride. The reason that they weren’t paying any rent or contributing financially is that they were broke, because they had a considerable amount of credit card debt.
I don’t mean to cast aspersions on my siblings, because the most important part of the story is that this person in particular has now moved out of home. And it wasn’t until they moved out of home that they really started to tackle their debt.
This brings me onto my important point. My sibling could have spent the many months they were living free of charge paying off their debts. But until they were truly responsible for themselves they didn’t. Debt reduction is all in the mind. Once you are in the right place, anything is possible, and until you are, nothing is.
- does debt-free mean mortgage-free?
- when sharing finances, do you split equally?
- boomerangs – try to get rid of them and they keep coming back