Transforming Debt into Wealth!

by Miss Mentor on August 30, 2009

Wealth Building Tip #4 is the DEBT STEP. Some folks think this should be #1. I strongly disagree. You MUST understand what money you have available before you can plan for living.

Here’s where my advice diverges from many other advisors. Why? I know you. I understand the difference between your student loans and credit card debt. All debt is NOT created equal….

***CAUTION: for those looking for quick fixes to wipe out credit card debt without paying for it, I am not for you!***

Manage your entire financial picture and to responsibly slay the debt monster. Transform your debt into wealth. It does you NO GOOD to wipe out your CC debt super fast only to have your car break down 2 months later . . . which ends up on what . . . yes, your credit card, again. Lather, rinse, repeat? No thank you.

Most people who dramatically slash their credit card debt end up incurring even more credit card debt later because they did not plan for emergencies. That is why you MUST complete these steps in the order given!

Building wealth takes time, be patient, be diligent. The rewards are well worth it. Control the beast. Transform your debt into wealth!

By now you have a pretty good plan. After a few months of success with WBTs # 1-4, you may be ready to tweak your plan a little bit. The beauty of building wealth is flexibility.

Make it work for you!

{ 5 comments… read them below or add one }

Lisa McLellan September 27, 2009 at 10:10 pm

All debt is certainly not created equal. I once paid off all my credit cards that were between I think 11 and 18 percent. I went into my overdraft protection on my checking account by several thousand dollars but I thought it was ok becasue now the debt was consolidated and it would be easier to pay off. I didnt’ realize that my checking account interest for the overdraft protection was 22.25%

Lisa McLellan
Child Care Expert,
Babysitting Services, Babysitting Tips, Babysitters, Nannies

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Rob Northrup September 29, 2009 at 3:57 pm

Paying off all credit card debt is a liberating experience.
So is paying cash for cars. (I am still working on that one).

Seize the Day,
Rob
Emergency Preparedness For the 21st Century Family

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Robert Martin September 29, 2009 at 7:38 pm

I agree all debt is not equal. I can’t wait to read more of your posts. Very informative.

Robert Martin
http://www.carbuyinghq.com

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Steve Chambers September 29, 2009 at 8:44 pm

Debt is evil because the debtor is enslaved to the lender. If we have too much debt we need a solid plan to get out of it. This is good advice.

Steve Chambers
Business to Business Sales Trainer

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Jose Escalante September 30, 2009 at 1:55 am

Looks like proper planing is important to true be debt free

Jose Escalante
http://www.joseescalante.com

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