I have been debt free for a few years. It is very simple, spend less than you make! I never use credit cards, take out loans, or buy anything I can’t pay with cash. There is nothing more satisfying than buying a new car with cash, or nice vacations without a worry about paying it off.

I make decent money now, but before I just had to live a simpler lifestyle. That meant living with roommates, saving bonuses and extra money and using it towards any debts, and finding hobbies that didn’t cost a bundle. Good luck, you will never regret living a debt-free life!Cutting out everything except the basics. Getting the cheapest apartment available. No TV, no cable, no internet access at home. No eating out. Cooking from scratch and no prepared foods. Walking whenever possible. If a car is absolutely needed, only buy used, fuel efficient models for cash. Get rid of all credit cards. Never buy food or beverages from a convenience store. Learn to tolerate tap water (no bottled water, no soda pop and definitely none of the costly energy drinks.) Never buy anything not on sale, and even then, only if there is no less expensive alternative. Good luck.I borrowed a lot of money to buy my current condo. Although with a hefty down payment. I refinanced a couple of times to grab lower interest rates, but never took equity out of my home by borrowing more than I owed. Every time I lowered my interest rate, I kept my payments up so more and more went to principal and less and less to interest. As I made more money, I increased my payments. I avoided fancy clothes, fancy vacations, excessive dining out, a much greater lifestyle which I could have easily afforded so I could put more and more to my payment. Then earlier this year I got the largest bonus I had ever gotten in my life through hard work. I then paid off my mortgage and have no debt. I’m still saving lots of money by having a lifestyle much less than I can afford. I save, save, save. If or when I need a new car, I will pay cash. I will never be in debt again. Save, save save. All of the other responders say it well. Spend less that you make. Pay yourself FIRST (savings account, then leave it alone). Pay cash whenever you can. If you want a big screen TV, save for it in a separate account. When the account balance goes up, and the price of the TV comes down to where they match, then you can buy it.

If you could buy a $25,000 car for cash, you’d save about $5,000 in interest (8%, 5yrs). That’s a lot of gasoline, two years worth at $4 a gallon.

The problem most people who are in debt succumb to marketing pressures. Marketing people know that sex sells. Few people know the true cost of debt and borrowing money.

Buy this – you need it – you want it – you deserve it – you can afford it – be the first to own one.

NO. I don’t need it – I don’t want it – I don’t deserve it – I can’t afford it – I don’t want to be the first to own one.

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