Published in on Friday, April 10 2009 by Ideal Debt Solutions
Do you look forward to going to work each day if you’re lucky enough to have a job? If so, then good for you and please read no further as you probably have a true vocation. If, however, you’re looking forward to it as much as a trip to the dentist, then maybe it’s time to re-evaluate things a bit?
You see many people these days living very high on the hog. People with good salaries often spend a lot and give the impression of wealth, but the reality is that they’re tied to their jobs. Great if they enjoy their work, but a fairly hollow existence if not. And how do many people try to fill the void? Why by treating themselves of course – thereby creating a vicious circle of endless debt.
The average UK household pays more than £3,000 a year in interest on debts – NOT including mortgage debt. That’s over 12% of the average gross salary. Total credit card debt is approaching £60 billion, and 3.4 million cardholders regularly make only the minimum repayment, thereby maximising their interest charges. It’s crazy money management, but it’s particularly mad for those who long to be free of the nine-to-five, but who continue to “spend, spend, spend,” for the short term distraction it brings.
The reality is that people who earn high incomes and spend it all—and sometimes a lot more - are wage slaves. If their income dried up, so would the lifestyle.
Real wealth, on the other hand, brings financial freedom. And freedom from debt is the key to building assets. Some debt may be necessary or even financially advantageous, such as a mortgage, student debt, or a commercial business loan, but generally speaking, debt is bad news for your pocket.
You’ll find lots of advice within these pages on how to free yourself from debt. As you do so, you’re taking the same steps which – if you continue to take them through life – will eventually set you free.