Don't wait for Economic Hard Times to Pay Down Debt
The economy goes up and down regularly. Sometimes the ups last longer, but eventually the market makes a “correction” and a recession occurs. You want to be prepared before a recession hits. That is why you should look at these 5 reasons to eliminate debt before a recession hits.
It is easy to get lulled into thinking that the economy will always keep booming. But history shows us that the economy goes up for a while, then it goes down for a while. For most people, the up is good, but the down creates issues. To help you prepare yourself before a recession hits, look at these 5 reasons to eliminate debt before a recession hits.
1. The bank can’t repossess a house they don’t own
One thing that typically becomes stressed in a recession is housing. You can lose your job altogether or lose income through salary reductions or job changes. With that loss of income, it becomes increasingly difficult to pay your largest expense, your home mortgage.
But when you eliminate your mortgage by paying it off, you free yourself. The bank is no longer your partner in owning your home. Being debt free means the bank cannot repossess your home.
2. You don’t have to figure out how to make payments you don’t have
When you have debt, you have agreed to make payments to the lender. Those payments are not contingent upon the economy being good. The payment is due regardless. When you are debt free, you no longer have monthly debt payments. Your obligations are to yourself instead of someone else. So when times get tight, you don’t have to choose between eating and making your payments. The payments don’t exist.
3. Your basic living expenses are smaller when you are debt free
When you are debt free, your basic living expenses are much smaller. You don’t have commitments or obligations to make payments, because you don’t have any debts. When it comes right down to it, many of the things that we have in our lives can be pared back to make our money go farther when times are tight. These are decisions that you can make, because you are in charge of them. You can cook at home more instead of eating out and spend less money. You can purchase more economical coffee. You can rent movies. You can accessorize in a way that allows your wardrobe to stretch further. You could even do some of these things to start saving money. Even in a recession!
4. Bridges make poor houses
Living under a bridge or on the street is not a good way for anyone to live. Having debt in an economic recession puts you in a vulnerable position. The lender has the right to repossess items you have pledged as collateral on a loan if you default on the terms. You give them that right when you sign the loan.
So if you miss your payments they can take the item. If those payments are on your house, it is possible that you could end up looking for a place to live. If it gets bad enough, you could end up on the street or under a bridge. You don’t want to be there, so get rid of your debt!
5. You can do more during a recession when you are debt free
Debt living can be tough in a recession. When you are debt free, you have more funds available to use. You can be enjoying yourself when other people are struggling. You can help other people get through the recession. The choice is yours when you are debt free. But in order to have that ability, you have to decide now to become debt free.
Don’t take a chance on surviving the next recession. Decide and act on eliminating your debt now before the next recession hits.
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1. Your bank cannot repossess what they do not own.
2. Eliminating many monthly payments gives you more freedom of choice.
3. You can live cheaper when you pay down debt. Don't work so hard at something you do not enjoy. Do what you like to do instead.
4. Pay down debt today and you'll never resort to begging.
5. When you are debt free you can choose not to participate in a recession or economic downturn.
Article: Secrets to Getting Rich
Book: People and situations change. Chose to make the first move. Read: Love Never Fails If We Never Give Up
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Anything you tolerate becomes normal to you. When you stop tolerating debt, you increase your ability to function without it. You can get yourself debt free. It will take some time, but the time you spend is worth it!- Dan Heiland
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