Excerpt:
Destroy Your Debt
MRS. PINCHPENNY
Copyright © 2010

Introduction

There are a lot of good sources to help you to get out of debt everywhere on the internet and in books and popular magazines. Sometimes all that information can be overwhelming, and many people don’t know where to start, but that is no reason not to start. The fact of the matter is it took a while to get into debt and it will take a lot of hard work and dedication to get out of debt. I’ve compiled some tips and the simplest methods I am aware of to reach your goals.

Because many people don’t begin this process until they are already in over their head, I am going to ask you begin the process in basic steps. The first step is to get caught up on all your payments and then you need to set an emergency fund in place to avoid using debt again during this process of paying off your bills. After you do all of that, then you can begin paying down your credit cards, or other debt. Some people may believe they have gone too far down to try to get back up, and believe bankruptcy is the only answer. In some cases this may be true, but bankruptcy does not fix everything. Student loans for instance can’t be forgiven in a bankruptcy court so I would encourage you to work through your debt and have a test at the end of this short article to help you determine if you are bankrupt.

Now some people might try to say it’s good to keep debt, but this just isn’t true in my opinion. Sure you can write off the interest on your house, but it’s just an excuse to stay in debt. When you do the math, you only get pennies on the dollar in the firm of the write off. I would rather have never paid the interest in the first place.
This book was also written to dispel some very popular beliefs and myths about debt. There is no good debt. Some people will try to differentiate debt into categories. Consumer debt is bad debt and good debt is investment debt that is used to create income, such as rental property, but that logical approach doesn’t factor in the emotional well being or the stress free lifestyle of living debt free. I can’t explain why paid off cars drive better. They just do.