Four Simple Steps To Get Out Of Debt - And Stay Out
By: Ivan Cavric Step One: Plan for the Unexpected Big Time Bill The first step arises from debt from a one-time large expense - something that is too large to be paid for with your monthly paycheck, or by saving for a few months. Many of these debts are investments in either an asset that will appreciate over time, or a income stream that will be greater over time. The most common example is the purchase of a home. Very few people are able to save enough money to purchase their home outright, or pay for their entire home out of a few paychecks. We use a mortgage to pay for the home after-the-fact, and to enjoy home ownership in the meanwhile. Another example is investment in education. Many people cannot afford to pay for college tuition outright - so we take out loans, planning that our future income stream will enable us to be able to afford to pay for the education after-the-fact. The more insidious type of one-t...