The Debt Free Lifestyle

Many people have been taught that you cannot get ahead without debt. We are also inundated with advertising telling us we can have anything we want. All we need to do is put it on our credit card.

We have become an impatient society, we want it right now. We have lost the ethic of working for what we want.

It is not how much money you make; it is what you do with it. By living without debt you can actually have a higher income since you are not paying out interest, you are actually getting paid interest on invested money.

All debt is not created equal. We will classify them as good debt and bad debt.

To simplify the classification we will say that good debt is a loan for something that you could sell at any time and repay the debt. This narrows down good debt to a home loan and possibly a home equity loan.

A bad debt, of course, is a loan on anything that will lose value.

Let's take a look at some debts that we would consider bad debt.

Home equity loans are in the gray area. They could be considered good debt if they are used to repair or improve your home, but you would be a lot better off to just save up the money for the project. Home equity loans become bad debt when used for purposes other than home improvement or maintenance. In other words a bad home equity loan is for anything that does not add to the value of your house. Do not jeopardize your home by taking out a home equity loan on unnecessary items.

One possible good use for a home equity loan is when the interest rates are low. You can use a home equity loan to refinance your mortgage. Home equity loans generally have lower costs than conventional home loans.

We consider school loans bad debt. If you finish school, get a good high paying job and then attack the loan like mad, a school loan may work out. The problem is that there are too many things that can go wrong. At best, even if you do graduate and get a good job there are always a lot of other expenses at this time in ones life. You are really behind financially when you start your working life in debt.

Auto loans are bad loans that have become common practice to us. We pay interest on a vehicle that will only be worth one half of its original purchase price in five years. Lately it has also been common for us to borrow more than a vehicle is worth. We can trade a car in that we still owe on, and roll that owed amount over into another vehicle. This gives us a loan amount that is higher than the value of the car that we drive away. We have lost our capacity to say NO.

Co-signing is a bad debt that usually and unfortunately involves family. If someone cannot qualify for a loan at a regular lending institution, they should not get a loan. The fact that they can't qualify for a loan elsewhere should tell you that they are a huge risk. Use this opportunity to teach them how they can get what they want by working harder for it and delaying the purchase.

If you want to get off of the debt treadmill, you must run as far away from debt as you can. You cannot use debt to get out of debt. Even if you do, you have not changed your habits; you must change your lifestyle.

John Cook is family oriented and likes to help people get off and stay off the debt treadmill and secure the financial future of their family. You can read more about securing your families finances at his website http://www.financeforfamilies.com.

---

Google News Updated : Tue, 07 Oct 2008 08:49:19 GMT Supreme Court opens term with cigarette marketing case - Los Angeles Times Canada.com Supreme Court opens term with cigarette marketing case Los Angeles Times - 1 hour ago The public lines up outside the Supreme Court on the first Monday in October, the traditional start of the court’s term, when justices hear oral arguments. Supreme Court Opens Term With a Tobacco Fraud Case New York Times Suit on Tobacco Ads Sparks Feisty Debate Washington Post USA Today - CNN - The Associated Press - Daily Press all 467 news articles Publ.Date : Tue, 07 Oct 2008 07:01:27 GMT 'Saturday Night Live' is buzzworthy again, thanks to Tina Fey as ... - New York Daily News Sydney Morning Herald 'Saturday Night Live' is buzzworthy again, thanks to Tina Fey as ... New York Daily News - 31 minutes ago Once upon a time, TV viewers would have had to stay up late to watch Tina Fey do her Sarah Palin routines on "Saturday Night Live. Alive from New York, Fey's Palin Paces SNL E! Online Palin may appear on ‘SNL MSNBC Boston Herald - Reuters - Washington Post - New York Times all 402 news articles Publ.Date : Tue, 07 Oct 2008 08:17:55 GMT Nobel Prize awarded for AIDS, cervical cancer research - Los Angeles Times Times Online Nobel Prize awarded for AIDS, cervical cancer research Los Angeles Times - 1 hour ago Luc Montagnier dedicated his award to AIDS sufferers and predicted results on a "therapeutic vaccine" for the pandemic within four years. 2 AIDS researchers receive Nobel Prize Chicago Tribune Work tied to HIV, cancer earns scientists Nobel Prize Detroit Free Press People's Daily Online - International Herald Tribune - Philadelphia Inquirer - Hartford Courant all 1,117 news articles Publ.Date : Tue, 07 Oct 2008 07:01:27 GMT New prenatal test may be less risky than amniocentesis - San Jose Mercury News ITV.com New prenatal test may be less risky than amniocentesis San Jose Mercury News - 6 hours ago By Lisa M. Krieger Building on the latest developments in DNA science, Stanford University researchers have designed a prenatal genetic test that appears to be just as accurate - but much safer than current methods like amniocentesis - by using a ... Safer prenatal Down's syndrome test found in US Reuters Blood Tests Ease Search for Down Syndrome New York Times Bloomberg - WebMD - Telegraph.co.uk - The Missoulian all 175 news articles Publ.Date : Tue, 07 Oct 2008 02:10:40 GMT Red Sox squeeze past Angels, advance to ALCS - Washington Post Red Sox squeeze past Angels, advance to ALCS Washington Post - 1 hour ago BOSTON (Reuters) - The Boston Red Sox beat the Los Angeles Angels 3-2 on Monday at Fenway Park to advance to the American League Championship Series for the fourth time in six years. Rays, Red Sox will play for pennant Detroit Free Press Relentless Rays dominate ALDS MLB.com New York Times - FOXSports.com - Sports Network - Newsday all 2,394 news articles Publ.Date : Tue, 07 Oct 2008 07:48:05 GMT Scores homeless after Tibet quakes - CNN Xinhua Scores homeless after Tibet quakes CNN - 44 minutes ago (CNN) -- Nine people were killed in the pair of earthquakes that struck Tibet, China's Ministry of Civil Affairs reported on Tuesday, lowering the toll of 30 that had initially been reported. Government officials head to quake site in Tibet Xinhua Schools closed for safety after Tibet quake Reuters UK Aljazeera.net - United Press International - The Associated Press all 732 news articles Publ.Date : Tue, 07 Oct 2008 08:04:47 GMT UPDATE 1-Qantas jet hits turbulence from Singapore; 30 hurt - Reuters ITV.com UPDATE 1-Qantas jet hits turbulence from Singapore; 30 hurt Reuters - 1 hour ago SYDNEY, Oct 7 (Reuters) - Over 30 people were injured, some with broken bones and lacerations, when a Qantas passenger jet flying from Singapore to Perth struck turbulence on Tuesday and had to make an emergency landing at a remote Australian airport, ... Mid-air incident forces Qantas flight to land just after takeoff guardian.co.uk 40 hurt in mid-air jet 'incident' in Australia CNN International Bloomberg - The Press Association - BBC News - Flight International all 153 news articles Publ.Date : Tue, 07 Oct 2008 07:46:41 GMT RSS Software Increase Online Traffic

PARLOT::Ebooks, Scripts, Websites, and more...

Adsense websites

Learn How to Get out of Debt

Debt is becoming number one problem in the United States... Read More

Debt

We all know about debt. If you don't have too... Read More

Hide That Car! Fighting the Repo Man

Vehicle repossession may appear justified in circumstances where a person... Read More

Turning Bad Debts into Good Debts through Investing Fundamentals

If you've ever earned enough money to put some aside,... Read More

What Are The Benefits and Consequences Of Getting Rid Of Debt The Easy Way

We have all experienced getting so far in debt we... Read More

Get Debt Free

If you once have been caught in the debt trap,... Read More

Bouncing Back from a CCJ

Should you be unfortunate enough to face a CCJ ?... Read More

Benefits and Drawbacks of Bankruptcy

Outlined below are some of the benefits and drawbacks of... Read More

Different Ways Of Dealing With Debt

Bills, creditors, debt collectors. Are you yearning for the days... Read More

Credit Counseling ? Signs That You May Need Help

Credit counseling is a viable option for those who are... Read More

Reduce Your Debt

Do you want to reduce your debt? Having trouble paying... Read More

Should You Invest In Savings Or Payoff Your Debts?

I have faced this financial question 8 years ago and... Read More

What is Debt Settlement and How Does it Work?

Debt settlement involves negotiating with a creditor or creditors to... Read More

The ONE Law You Should Be Breaking

There is a law all smart people break.Parkinson's law.Parkinson's law... Read More

Are You SURE Your A Bad Debt?

Many people who seek the advice and guidance of debt... Read More

What the Mail on Sunday Said

Anyone considering Bankruptcy may have experienced fear after reading an... Read More

5 Ways to Get Out of Debt

It has been said that everyday more and more people... Read More

Future Secured? Oh Really?

A headline for a retirement annuities flyer declares "Future Secured!"... Read More

The Road to Debt Relief

Living with debt is not something someone hopes for, but... Read More

Save Money When Going Out

It seems as though whenever we go out for the... Read More

Bankruptcy Reform: Designed to Protect Big Business

Who will benefit from the new bankruptcy reform laws? The... Read More

Personal Bankruptcy ? If Its Unavoidable, File Now

The Bankruptcy Abuse and Consumer Protection Act, signed into law... Read More

The Simple $10 Debt Elimination Solution

Ask a friend what resolutions they made for 2004 and... Read More

Budgeting and Debt Management

Debt management (specifically unsecured) is the first step to taking... Read More

Debt Collectors; And what you can do to Get Them Out of your Life

FTC opinion letter on validation Section 809(a) of the FDCPA,... Read More