Living Debt Free

Debt Proof Living is Still the
Best Financial Management Advice



Living debt free was considered the best financial management advice in the past. Today it is even more urgent to practice debt proof living in

order to experience a life of financial freedom.

The idea of becoming debt free for life is a foreign concept to many people. The use of credit is so common in our society that it has become the norm. Very few people today know someone without debt.

Personal debt increased significantly in the years leading up to the Great Depression. Many who lived through that era later adopted a frugal lifestyle and became wary of accumulating debt.

Renewed Interest In Debt Free Living

Today, there is renewed interest in living debt free. Because of the current challenging financial times, many people are seeking debt free financial advice.

Debt is so common that people sometimes don’t even recognize or acknowledge that they are in debt.

Credit cards, car loans, payday advances, small business and farm loans, student loans, mortgages, delinquent taxes, and home equity lines of credit are all forms of personal debt.

Like so many aspects of our finances, we tend to compare our situation to others when it comes to using debt. We become complacent. Many of us have the mindset that…

  • No one buys a car with cash.
  • Everyone has a mortgage.
  • No one comes out of college without a loan.
  • We can have whatever we want now and worry about paying for it later.

And so, we rack up debt, conveniently ignoring the long term consequences.

Or, if we do recognize the ill effects that it can have on our lives, we don’t know how to eliminate debt or seek out debt relief options.

Live Without Debt - Good Debt Versus Bad Debt?

While some financial experts distinguish between good debt versus bad debt, the fact is that any kind of debt can weigh us down and steer us off the path from debt to financial freedom.

Some would argue, however, that it isn’t a good thing to be entirely debt free.

My wife and I always worked hard toward the goal of living debt free. We scrimped and saved and were committed to living within our means. Soon, we were able to pay off our largest and last debt, our mortgage.

What a great feeling it was to pay off the mortgage early!

We got rid of our credit cards and instead used debit cards when we needed them for convenience. We were committed live without debt.

A few years later, I opened my regular car insurance renewal bill. I was shocked to see that the premium had risen dramatically. After contacting the insurance company, I found that the increase had to do with our credit history.

Our credit history? I told them that we had no debts and always paid all of our bills on time. What could be better than that?

Then they explained that the increase was due to our lack of credit history!

Committed to remaining debt free, we reluctantly started to use credit cards for small purchases, always paying off the balance in full every month.

This boosted our credit score and soon restored our lower insurance premiums. Since then, I also found many other ways to improve credit rating.

It is truly unfortunate that those of us who conscientiously avoid debt are penalized in this and other ways.

But, I wouldn’t have it any other way! Financial freedom from worry is definitely worth these kinds of hassles.

Living debt free is a terrific option for anyone who is willing to commit to it!

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