The 7 Financially Savvy Traits of Debt-Free People

Some consumers are better with their money than others, which explains why people can be on a high income and have plenty of debt, while those who earn less can have none or very little. There are strategies you can use to keep your life unencumbered by the anxiety of excessive debt.

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The stress of debt can take its toll on your health and well-being. A report from the BBC details how many young people are burdened with concerns over money, and how some should seek help.

Patience

Financially savvy people figure out if they can afford something before they buy it. Those who can’t have the sense to walk away until they can.

Confidence

Debt-free people are happy to drive an older car or use last year’s smartphone so they can put that extra cash into paying off the debts they have rather than acquire new ones.

Committed

The debt-free are driven by the goal of getting out of debt, and they will draw up a strategy in order to do so. If they have a lot of debt, an IVA may be of assistance in getting it under control.

Priorities

Responsible people who want to get out of debt take care of their bills and household expenses first. If there is anything left over, they attack their debt with it, knowing that holidays will still be there to enjoy when the debt has gone.

Limit Credit Cards

Debt is not useful, and neither is running up big bills on your credit cards. It all has to be paid back, with a hefty amount of interest. If you feel overwhelmed by debt, then consult experts in IVA advice.

More Than Stuff

The debt-free person is not consumed by materialism. Nice things can be fun, but there are other important elements in life to be savoured. Having a huge house but being constantly in fear of not making the payments is probably not worth the years the worry will take off your life.

Greater Good

The debt-free are prepared to make short-term sacrifices to achieve the long-term goal of paying off their debt. An economy drive can include limiting weekends away and fancy toiletries, but budget constraints like this are only temporary and can be left behind when the debt is just a memory.