How to Build a Bridge to Financial Freedom Right Now

"Money is a terrible master but an excellent servant." -PT Barnum.

When you are in debt, money is your master. When you get out of debt, in a sense, you achieve financial freedom by turning around your financial health.

 
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How do you go about building that bridge to financial freedom? It all starts with three simple steps:

  1. Stop procrastinating and start taking action.
  2. Educate yourself financially.
  3. Find out if you need professional debt help.

Let's consider these three steps in more detail.

Step One: Take Action

Procrastination is the number one reason people fail financially. It's easy to put off the uncomfortable decisions you need to make to address debt issues and to come up with reasons to procrastinate such as:

  • I'm too old to tackle my debt problem now.
  • I have too much debt to ever pay off.
  • I'm not in that much debt yet, so I still have some time before I have to worry about it.

Here's the truth of the matter. Debt does not simply go away on its own. When you delay taking care of your debt, all you do is to limit the options that are available to you for handling the debt. The longer you wait, the worse the problem becomes, and the fewer options you will have for managing the problem.

Your best course of action is to decide today to take action. You can do it, and you do not have to do it alone.

Step Two: Get a Financial Education

To get out of debt, you need to assess your financial situation and understand its implications. You need to know why you are indebted, where your debts originate, and how much they cost.

Take a look at your monthly spending habits and learn where your money goes each month. Compare what you spend with what you earn and see where you can make adjustments. Prioritize your bills according to what is most important and work on paying off those bills first.

Once you have your monthly payments in order, invest in your financial future by becoming more financially literate. Financial literacy is perhaps the most underrated and neglected basic survival skill in the modern world. In the US, the financial education situation is dire.

(Source: Forbes.com)

According to a Fortune.com survey, almost two-thirds of Americans have no idea how interest works, and cannot calculate the interest cost of a $1,000 loan with a 20% APR.

Financially literate people make better financial decisions.

Financial literacy gives you the skills and tools you need to build a bridge to financial freedom. Financially literate people make better short- and long-term financial decisions.

  • They minimize their credit card debt, by avoiding to pay the minimum amount owed.
  • They steer clear of expensive mortgages and auto loans.
  • They maintain better credit scores by avoiding debt delinquency.
 
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Step Three: Honestly Assess Your Need for Professional Debt Help

How do you know if your debt situation is serious enough to require professional help? To learn whether you need outside help with your debt relief, ask yourself some questions.

  • Are your creditors pressuring you about missed payments?
  • Do you constantly pay the minimum amount owed on your credit cards?
  • Is your credit card one of your essential budgeting tools?
  • Do you regularly use credit to cover your monthly spending?
  • Has your income dropped recently?
  • Have you incurred an unexpected expense that has impaired your ability to make regular credit card payments?

If your answer is "yes" to more than two of those questions, you likely need to consider debt consolidation. Give ClearOne Financial a call to discuss your options at 888-716-4120, or click here for more information.

ClearOneFinancial.com ("COF") provides an online marketplace where interested consumers have an opportunity to receive personal loan offers from a network of lenders. Lender rates range from 3.99% to 35.99% APR and loan terms range from 24 to 84 months. COF does not make loans or make credit decisions. We also do not charge you, the consumer, any fees for our services. COF receives its compensation directly from lenders as a result of presenting loan offers. Not available in all states.