No one talks about the severity of their debt problems as much as they like to talk about their aspirations to become rich. Becoming wealthy becomes unto a pipe dream, or something to ramble about like the guy at the end of the bar who just won’t shut up.
Wealth is not a destination, it’s a complete rewiring of your psychology relative to your relationship to money. Also, you can’t treat debt like an unspeakable boogeyman, like Freddy Krueger. You must confront it. Most Americans have over $8,300 in credit card debt.
How to become wealthy: You must change your mindset with money. Debt must be eliminated or reduced. If your debt-to-income ratio is too high, you won’t able to pay bill, never mind get rich. You have to save money every month, even if it’s a dollar. Start a business or invest wisely. Take responsibility for your life choices. Get the help of a financial advisor.
My Personal Promise to Cut Debt
It’s very easy to preach about what you are doing wrong in life relative to your own money, so I won’t. Instead, I will talk you about what I did wrong with money. Hi. My name is Allen Francis. I am a freelance writer and aspiring businessman.
I used to be so broke I needed glue applied to me. It took a decade for me to get my life together. I am actively working to become wealthy within a decade. My step towards that goal was to eliminate my credit card debt.
I Don’t Own Any Credit Cards
When I first got married, I used credit cards to pay for everything. I used credit cards to pay my rent, my groceries, and everything else. Credit cards were my go-to payment method for all of my non-essential impulse buys as well. I must have had $9,000, or more, in credit card debt.
This era of my life was in 2006-2007 before the 2008 global financial crisis, after which getting a credit card became much more difficult. I was barely making $30,000 annually. Then, within a six-month time span I got divorced, I lost my job, I was homeless, and I had to ask my mother, who was ailing in health, if I could move back home.
I fell into a paralyzing depression. For the next few years, I worked on my writing, but I just couldn’t see beyond my own self-induced hopelessness. I soon took responsibility for my own actions. One thing I realized is that if I wanted to get out debt, I had to stop using credit cards.
That wasn’t much of a problem since all of them were closed at that point. I paid as much as I could and got the collection notices. I haven’t used a credit card since 2008. For one thing, I just didn’t have the income for it.
A Long Journey Beginning with One Step
Now that I have been a self-employed writer for several years, I just couldn’t imagine applying for a new one now. I am a long way from becoming wealthy. But I know that assuming new debts now won’t help, so for the time being, I won’t be using credit cards.
Read More
The Truth About Credit Cards and Whether you Need One
Embracing A Life Without Credit Cards
Things To Think About Before Closing Credit Cards
Allen Francis was an academic advisor, librarian, and college adjunct for many years with no money, no financial literacy, and no responsibility when he had money. To him, the phrase “personal finance,” contains the power that anyone has to grow their own wealth. Allen is an advocate of best personal financial practices including focusing on your needs instead of your wants, asking for help when you need it, saving and investing in your own small business.