A while back we wrote about abundance and contentment. We believe that being content with what we have has brought us even more abundance. With today’s’ material obsession, it’s hard to maintain contentment. Those currently focused on paying off debt have likely given up some of the material things they previously enjoyed. It’s hard to maintain focus on paying off debt when your lifestyle has changed so much. It can feel like you lost your freedoms and ability to be financially carefree.
We want to give you an adjustment. The adjustment is with your understanding of home equity. You see, many of us have been led to believe one thing about home equity when the reality is acutely different. This misinformation, if not an outright lie, puts you and your family in a precarious situation that could lead to financial disaster.
We moved into our condo seven years ago. We were very excited, as this was our first home purchase; it was a blank canvass; it was below our budget and met our architectural aesthetic. Another reason why we were so excited was because we bought into a condominium. Neither of us particularly loves yard work, painting and fixing things. David’s handy, but I’m not. I led a cushy life when it comes to home repairs and maintenance and it’s not fair for David to do it all. So, naively, this is one of the reasons we bought into a condominium with a homeowner’s association (HOA) and a property management company. We thought that among all of them they would handle most home maintenance issues.
CNBC reported yesterday that the 2014 Retirement Confidence Survey, produced by the non-profit Employee Benefit Research Institute and Greenwald & Associates, shows that American workers are more confident in their ability to retire comfortably because of recent stock and housing market gains over the last few of years.
In the comment section, I said, as I often do, “A home is not a retirement plan.” This garnered comments, which I appreciate. Comments inspire me and make me think. One commenter said that a home can be part of a retirement plan. They included the example of northeasterners who sell their homes and move to a smaller, less expensive home down south. They often pay for their new home with cash and then have money left over. Another commenter said that it is nice to have a free place to live in retirement, rather than a place to rent.
I do not believe this is entirely accurate.
Being buried in debt can be extremely stressful, especially if debt collectors are blowing up your phone “like [it] is a disaster”. Often, we do not know how or why we got into this situation.
Meditate on how you got into your predicament. If it was not due to an unexpected emergency, look internally to find out why you consumed so much debt so you do not repeat your mistakes.
Regardless of how you acquired your debt, here are five suggestions to get rid of it. There are many ways to get out of debt and many online lists that tell you how to do so. These are five of the most efficient ways of which we are aware.