Comments on: Investing Prerequisite #1: How To Deal With Debt http://personalfinanceandinvesting.com/archives/investing-prerequisite-how-to-deal-with-debt/ Personal Finance, Investing and Economics Tue, 15 Jun 2010 16:44:15 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: WiseMoneyMatters http://personalfinanceandinvesting.com/archives/investing-prerequisite-how-to-deal-with-debt/comment-page-1/#comment-7 WiseMoneyMatters Thu, 05 Feb 2009 13:43:10 +0000 http://personalfinanceandinvesting.com/?p=215#comment-7 I have spent the last 2 years positioning myself to the point I am now where I'm completely debt free except for my mortgage. It is such an incredible feeling to have absolutely nothing hanging over my shoulder. It's awesome to be able to make double payments against my mortgage. There is such a freedom about it. I would also add that, in expansion to step 1, that you should resolve to never ever use debt again. Cut up your credit cards like it shows in the picture so that you can't use it even if you wanted to. Don't let yourself even be tempted to use debt. If you have an overdraft plan into a HELOC, cancel it. I know that seems counter-intuitive but it will train you not to overdraft your account. I have spent the last 2 years positioning myself to the point I am now where I’m completely debt free except for my mortgage. It is such an incredible feeling to have absolutely nothing hanging over my shoulder. It’s awesome to be able to make double payments against my mortgage. There is such a freedom about it.

I would also add that, in expansion to step 1, that you should resolve to never ever use debt again. Cut up your credit cards like it shows in the picture so that you can’t use it even if you wanted to. Don’t let yourself even be tempted to use debt. If you have an overdraft plan into a HELOC, cancel it. I know that seems counter-intuitive but it will train you not to overdraft your account.

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