Stop the Debt Cycle

The debt cycle begins with word play. If lenders offered customers the opportunity to owe them money, most would decline and run for the hills. Instead, the word credit is used to trick the mind into believing your not entering into an employment agreement. The term debt free bread means money owned not owed which everyone should want. When you acquire credit you begin to work for someone else instead of yourself. For example, most people aspire to obtain a mortgage which usually carries a 30 year sentence. Luckily, my family’s attempt to do the same changed our relationship with money forever.

After applying for a mortgage with Wells Fargo, we discovered we couldn’t get pre-approved without extra measures like a manual underwriting complete with letters of explanation. The feeling of being rejected was a much needed wake-up call. We realized our finances weren’t healthy, managing debt is idiotic, and paying minimum payments on time wasn’t enough. That day changed my life because it began my quest to learn more about money, credit, and buying a house.

As a result, we’re now on a debt free journey and never want to acquire credit i.e. debt ever again. So far, my husband and I have managed to payoff $9318.00 of student loan debt in just 7 months. We didn’t receive a windfall of money. Nor are we a family with two incomes or no children. In fact, my husband is a hardworking blue collar man averaging between $45,000 and $65,000 a year. Meanwhile, I stay at home with our two beautiful boys with special needs. I’d like to share the principals that allowed us to change our relationship with money. Below I’ve listed some questions to ask yourself to stop the cycle of unconscious spending.

Imagining leads to action which creates a readiness and desire to do something today. Whereas, dreaming exist in the walls of your mind, only coming to fruition at an unknown day and hour. Are you dreaming or imagining a debt free life? Your answer makes all the difference. Its well understood that all actions begin with a thought. So, decide to imagine a debt free future, then begin to build.

First, you need to understand why being debt free is important to you. If your reasons aren’t clear or easily forgotten when temptation arises, your debt free journey will come to a screeching halt. In order to increase your chances of success you need to remember why your relationship with money must change.

Start by getting small pieces of paper and a pen. If you have a significant other, they should do the same. Begin to write down all the reasons you need and want to become debt free. Then place the notes in a clear jar labeled, “Debt Free Dreams.” Everyday remind yourself why you’ve chosen a road rarely traveled by pulling out a note as soon as you wake-up.

This step is important because most of us are in debt due to unconscious spending. Allow your own thoughts cemented on paper to remind you of your financial goals. When you’re tempted to cheat yourself (and you will be tempted) the jar will allow you to draw strength from your own words. You can write similar thoughts in a small memo pad that can be carried in your purse or pocket while on the go.