Five Important Characteristics of Debt-Free Living

 Though the thought of voluntary sequestration may be scary, it is one way to break free from the debt cycle. Once debt-free, it is important to develop certain characteristics, which will eventually become part of your lifestyle, allowing you to stay free from the control that debt has over your life. Let us look at some of the important characteristics of people enjoying debt-free living:

  1. Self-Control

One of the important characteristics of debt-free living is having self-control. A person exercising self-control has more money because they do not open a store account to buy furniture and clothing for which they could pay cash. Exercising self-control in terms of finances helps to avoid debt.

  1. Attention to Detail

Another one of the characteristics of debt-free living is attention to detail. Debt-free people do not want to spend money paying for additional monthly subscriptions, such as the clothing store’s monthly magazine. They review their monthly bank statements to identify mistakes, such as bank fee overcharges. They keep record of when payments are due as to avoid having to pay interest or penalties on late payments.

  1. Use Less

Though, for most people, the mere thought of not spending all their money is a far-off dream because they are caught up in the debt cycle, people that live debt-free are the ones that spend less than they earn. They set budgets and stay within their budgets. The extra money is saved or put into investments. With additional funds in the bank or investments, should they encounter unforeseen circumstances, they have the funds to deal with these, instead of having to apply for loans or using their credit cards.

  1. Long-Term Thinking

One of the important characteristics of debt-free living is having a long-term outlook. Instead of buying on impulse or thinking just about the immediate needs and wants, such people consider their long-term financial health. They are willing to wait until they have saved up enough to have specific items instead of spending all their cash on immediate wants. They are, for instance, willing to wait a few weeks before buying a new couch, rather than buying it on credit and then having to pay interest for months.

  1. No Debt

The most important of all the characteristics of debt-free living is not having debt. This is financial freedom. There is no bank or creditor that demands their monthly chunk from your earnings. It also comes with less stress.

Regain control over your finances. Start living debt-free by developing the above characteristics. Speak to our attorneys about voluntary sequestration to help you end the debt cycle.

Disclaimer: Information is relevant to the date of publishing and is not intended as any form of legal advice. Please call on our attorneys for legal guidance rather than relying on the information herein to make decisions – November 2017.