How to Defeat the Debt Monster

Some people think that it's impossible to live without the debt monster.  They think he's a permanent roommate.  The longer he's been around the more challenging it is to evict him.  I'm pushing 60 and my debt monster has been around ever since I was old enough to sign up for credit cards.  Credit cards aren't evil but they do have the ability to ensnare those who don't see the trap – a lifetime of payments to others for the use of their money.

I have a suggestion for those seeking a way to defeat the debt monster and remove him permanently.  Simply pretend your debt monster isn't really a monster.  Your debit card isn't a monster, right?  What's the difference between your debit card and your credit card?  In our household, we pretend our credit card is really a debit card.  No monsters exist because there aren't any interest fees when the credit card is paid in full before the due date.  That's right.  Our credit card usage is limited to those times when the money is in the bank first, just like our debit card usage.  No money, no charge.  No charge, no interest.  No interest, no debt monster.

Once the credit card debt monster has been domesticated and turned into a harmless family pet that rewards you with points or money when used properly, you can turn your attention to car loans and mortgages.  Car loans are easy if you can curb your appetite and stop buying the latest models with high price tags and drive your vehicles long after the loans are paid off.  In fact, why not just keep making those car payments to yourself once you retire your car loan and then make your next purchase using cash?

The last sign of the debt monster in our home is the mortgage.  We decided to accelerate our monthly loan payments in order to free ourselves forever.  The extra principal payments are on autopilot so we avoid the temptation to spend on other things we really don't need.  Slaying our debt monster is our top priority and we refuse to get distracted.  It's a daily effort.  Remember, you can feed your debt monster and he will be with you forever or you can set up a plan to evict him.  It's your choice.  Have a great day.