Once I was a debt free soul. I had no student loans and no consumer debt as I had already paid them off with due care.
31
July
2012

Once I was a debt free soul. I had no student loans and no consumer debt as I had already paid them off with due care. Some of my relatives and friends thought that I’d immediately start spending my suddenly-increased spendable amount. But, proving them wrong, I started saving a certain portion of my income on a monthly savings plan. Everything was going well. I was living a life without any financial headache until I made the decision to get back into debt once again by securing a mortgage.

I was like most debt free people who thinks it’s normal to remain debt free. In fact, those people who remain debt free, follow some certain guidelines. Or you can say they have some distinct characteristics.

1) They are very organized: Those who pay off their bills easily, know very well what their actual outstanding balance is, develop a household budget and always stick to it (no matter how circumstances twist). Debt free people keep track of their bills, the cash inflow, the monthly expense, how much they save and what they invest. Few years back, I myself went to a financial planner to bring back my household finances in order.

2) They carry out a budget: It’s not necessary that you should spend lavishly if you have plenty of disposable income. This doesn’t make any sense. Debt free people only spend on what is required and what they can afford. If they can’t, they simply move on.

3) They pay cash: One of the major reasons that I was able to become debt free is because I choose to pay cash and only used the cards in emergency. When I didn’t have the money, I never bought anything.

4) They have scarcity of credit: Debt free people understand the value of credit very well as they have limited number of that. They properly build their credit by using their cards deliberately and pay off the balance each month to avoid unnecessary interest. It was only for this reason why I had set my card's limit very low.

5) They are patient: Debt free people are those who can make tough decisions. They are very patient. If they can't afford something, they wait until the value of the object goes down.

6) They always compare: Debt free people think twice before buying anything. They never make any decision in haste. They cut coupons, wait for sales or buy second hand. They always look for realistic ways to save some buck at the end of the day.

7) They always think of the future: I was leading a debt free life and that's why it took a lot of time for me to think before taking on a new debt. I was quite hesitant of getting into a mortgage debt. It took a lot of thought, many calculations, a lot of investigation, and talking to several real estate and financial experts.

Thanks to my previous debt free nature, I'm still maintaining a frugal life so that I can repay my mortgage as soon as possible and once again call myself – a debt free soul!

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