Financial Independence Debt Solutions – Part 1

January 10th, 2008 | Stacey | Debt Management, Financial Freedom, Financial Independence

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If you are looking for financial independence, debt solutions are a top priority. When you finally get help with debt and start working your way out of being a day behind and a dollar short, you can start reaching toward the financial freedom you really want. Our new series will discuss various ways to handle debt and savings for financial success.

Today we will consider the value of saving a little bit for a rainy day, despite the fact you are overwhelmed with credit card bills. Consider that when a emergency arises, you are likely to put the charge on your credit cards. Rather than charging in the face of crisis, you can continue to pay off your credit cards and use your savings to handle your needs. When you continue to use your credit cards for emergencies, it brings your debt level back to where it was and also impacts your credit score. If you put away a little money every month, you will have a cash reserve when you need it most so you can avoid the perils of plastic.

Of course when you save, your debt is paid off more slowly. However, when you consider that it will only take a short time longer to save and that you will ultimately have more in savings than paying additional interest by the time your credit cards are paid off, and you have done some excellent financial planning for your future.

Tomorrow we will consider other ways to find viable debt solutions for the financial independence you dream of.