OutOfDebtBlog.com

Some people ask: “Is debts a good or a bad thing?” Good question! Let me answer it by asking another question: “Is a breadknife a good or a bad thing?”

In the hands of someone wanting to slice a loaf of bread - a breadknife is definately a good thing. But in the hands of a cold-blooded killer it’s a bad thing! Everything can be used and abused. This goes for debts as well.

Had you asked me a few years ago whether debts were good or bad I would have said bad. Instantly! Most debts are bad - but some debts are good indeed. Confused? Let me explain:

Bad debts takes money out of your pocket. This is what makes consumer debts, credit card debts, personal loans, car loans and the mortgage on your house a bad debt.

Good debts put money into your pocket. How? Well - a mortgage on a buy to let property is a good example of a good debt. You buy the property, rent it out, and your tennant pays your mortgage and the expenses on the property. Meanwhile the property will most likely increase its value (over time all property does).

Unfortunately most people has only got bad debt. The kind of debt it’s hardest to get rid of as well!

Later this week I’m going to share with you a technique I have found that will help me get started on my journey to a debt free life. Using it - most people can clear their bad debts in 5-7 years. I recon I can have mine cleared in 2 years. I can’t wait!

Technorati Tags: Definition of debt, Bad debts, Good debts

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If you want to excel in what you do - you must get the basics right. This goes for anything you do in life. Money is no exception!

You’ll never become a world class chess master if you don’t know how the pieces move. You’ll never be the best gardener in the world if you can’t tell a rake from a spade. Never mind being in control of your finances if you don’t know the difference between credit and debt.

I don’t mean to be patronizing. In fact - I’m probably speaking to myself as much as (if not more than) I’m speaking to you.

The shocking truth is that most people, when stopped on the street, probably wouldn’t be able to tell the difference between credit and debt. If you can’t tell the difference between credit and debt - how are you going to balance them?

So who is to blame for this? Is it the individuals who was tempted to, and did, spend more than they were earning? Is it the lenders, for making acces to credit cards and loans too easy? Is it the school system, for failing to provide financial education? The truth is - it’s a combination of them all.

But here’s the good news: It’s never too late to start learning! You can take control of your finances, set up a budget, and start a journey towards financial freedom.

I have made a decision to start that journey - which is why I have set up this blog - in the hope that more people will join me, and start chasing their dreams.

Do you want to come?

Technorati Tags: Money, Managing Money, Financial Freedom

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Just a quick update for those who have visited my blog lately…. I’m still here! I know it doesn’t look that way - mainly because I’ve been doing loads of “work in the back-office” over the last few weeks.

Due to some technical difficulties with the theme I was using on the blog - I decided to completely re-design the whole thing. This work has now been finished to the point where I feel I can move on, and start doing what blogging is all about anyway. Adding valuable content!

This doesn’t mean, however, that I have finished tweaking my theme to fit my wants and needs - but at least I have got a foundation to build on now, and a theme that seems to be able to accomodate what I want to do.

Thanks for your patience.

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Today is December 4th 2006 - and I’m setting out on a journey. I don’t know how long the journey will be - but I aim at completing it before January 1st 2009.

I am not going by car, plane or boat. My journey is chasing one of my dreams! My journey is one towards a life without debts. A life of financial independance. A life where I work because I love to - not because I have to! A life that allows me to be passionate about things that I care about.

A lot of people share my dream with me. You may have ended up on this website - because you do! I hope you will leave this site encouraged to start your own journey, because you have seen that it can be done, and because you have been inspired to make your dream come true.

If you do - I will consider this website a succes! I’ll be delighted if this website is the escape from the debt-trap for just one more person than myself - but I hope to make it a valuable ressource for many.

You only live once - so start living life today!

Technorati Tags: out of debt, Journey, Financial Freedom

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