Is there any freedom from any kind of debt? Yes, it is definitely possible. Undoubtedly, much of humanity is involved in such or other indebtedness, but most are free. The question is: what are the debts? As you know, debt can be either a loan received from a bank or a non-bank lender, and money taken from friends, relatives or some more distant acquaintances.
Credit commitment with a bank
The media-inflated bubble of information seems to suggest that almost every second, if not every, person is involved in a credit commitment with a bank or a non-bank lender, but this is only due to the availability of modern information space and media competition. Research has even been conducted to show that most ( more than 50% ) of Latvia’s population are involved in credit commitments, but as we know, only a certain proportion of the total population of the country is surveyed because it is not possible to survey 100% of the population. , therefore, this information is not considered a hundred percent objective and reliable.
Borrowing of cash
It appears that debt is more widespread in the form of borrowing of cash or cash from relatives, friends or acquaintances. And it is no wonder that these debts are more widespread, because they do not pay anything, unlike credit commitments, that is, the lender does not have to repay excessive interest payments but only the amount of money lent.
True, many choose not to engage in this kind of debt because they are afraid of damaging their relationship with lenders if they fail to repay their debt. Interestingly, why borrowers are not so much afraid of non-repayment of the loan by the lenders? In this case, however, the consequences of non-repayment of the loan are more serious and more influential…
Free from any debt
However, believe it or not, you can be free from any debt, that is, you can live, live exclusively with your personal financial resources without taking any of them from any natural or legal person. Whatever your monthly income, you first have to put up with them and give up any extra cash borrowings, thinking about trying to forget about the existence of such an option. Focus solely on your personal finances – how much do you have and how much do you need them? When you are aware of it, focus on increasing revenue and then reducing costs, because spending will be higher or lower. Look for additional earnings opportunities – additional work, workload, more efficient use of existing hours of work, or other alternative income options such as passive income opportunities or starting your own business.
Also think about spending cuts – of course, it is not possible to get rid of the mandatory monthly expenses such as utilities, food, transport, but it is certainly possible to reduce them by focusing on the basic principles of more economical or economical living, not to mention exaggerated extremes, for example refusing to eat, wash or use electricity. To learn to live without debt, the key is to learn to think that such an opportunity has never existed and will not exist – you only need to learn to dispose of the money you have earned without falling into the temptation of easy, quick, foreign money.