Welcome to Home Mortgages
Mortgage Mae Article
This is a selection made from among articles on Mortgage Mae. For a permanent link to this article, or to bookmark it for future reading, click here.
Debt Elimination 2
from: Roy ThomsittThe First Step To Debt Elimination
Regardless of your personal and financial circumstances, your education and your background, the chances are the first step you need to take in debt elimination has to take place in your mind. The Western mindset, especially in the US and UK, is firmly fixed on consumer debt. It is the way you have been reared in a debt ridden society.
To be realistic, let us assume that total debt elimination is not practical, nor necessarily desirable, from a financial point of view. The one major exception is in buying a house. When you buy a house, very few people are likely to be in a position to do so with cash. Unless they have inheritance, are very wealthy, are moving down the house market, or moving from an expensive to a cheap area, people buying a house will require a mortgage.
There can be considerable financial gains in the long run from taking on mortgage debt. Firstly, you have to live somewhere, so living in your own home is more desirable than renting for the rest of your life. Secondly, if you are lucky the capital growth on the house over the years will increase your underlying wealth, in a way that cannot happen with rented accommodation, which has the opposite affect. So, let us assume, for the purpose of this article, that by debt elimination we mean the elimination of all your consumer debt, except your home mortgage.
You may well find that, if you can change your mindset to be against borrowing to feed your consumer desires, that mortgage will be paid off much sooner than your average contemporaries. When you reach that stage, then there is every possibility that your debt elimination will become total, and your mindset will be so changed that there is never a need to take on any new debt.
Changing The Mindset To Support Debt Elimination
You are unlikely to find it easy to alter your attitude towards consumer debt. After all, it is the way you have probably been brought up, surrounded by easy credit. However, changing that mindset is both possible and financially desirable; debt elimination is achievable if you can successfully get through this first stage in the process.
So, how do you change the way you think about debt? Now, I am talking purely about consumer debt, not borrowing money to start or expand a business; about using debt to satisfy your material desires earlier than you can really afford them. Business finance can, and often does, justify itself through increasing your wealth at a faster rate than the interest charges decrease your wealth.
Consumer debt, on the other hand, is guaranteed to reduce your financial well being. When you borrow money to spend on consumable items, such as holidays, and diminishing assets, such as cars, then your wealth building is undermined; your assets are reduced over time. That, really, is the key to altering your mindset to favour the elimination of debt from your life. You need to:
1. Be aware that consumer debt is not good for your financial well being. You are increasing the bank's assets, and decreasing your own, by spending on credit.
2. You need to resent the fact that the banks make money out of you, when it should be the other way round. It's your hard earned money we're talking about here.
By giving constant focus to those two things you may develop a mindset that is shifting towards debt elimination. You can then give yourself greater strength in your determination by convincing yourself that, not only is debt elimination possible in the long term, but it will bring with it many rewards:
1. You will feel financially comfortable and in control; it really is a great feeling as those around you drown themselves in debt.
2. Over the years you will accumulate significant wealth compared to those earning the same amount but whose debt has always been out of control.
3. You will be able to walk in to a travel agent and pay cash, or debit card, for each vacation, while the person behind you in the queue will probably pay by credit card and then struggle the whole year to pay it off before the next vacation.
4. You will be able to walk into a car dealer and negotiate the best possible price for a new car as a cash buyer, knowing that the cash is your own and not the bank's.
5. You will be saving regularly for all your needs, while paying off your mortgage within the term.
All the while, your wealth will be accumulating, not being stripped bare by interest charges.
Imagine, in 10, or even 5, years' time, a comfortable financial life with no pressures. You may not be a millionaire, but beside your peer group you will be a beacon of financial stability and growing wealth. It's a long term process, but once you have the mindset, the journey can become a smooth one, with good planning and determination. Debt elimination really can be the final goal.
In the next article I will look at planning to eliminate debt.
About the Author
Roy Thomsitt is the owner and part author of http://www.eliminate-credit-card-debt-now.com
Mortgage Mae Specific links
Looking For Mortgage Mae Videos?
- You're looking for blinkx! Watch & search the largest selection of Mortgage Mae Videos now.
-- http://www.blinkx.com/
Entertainment News
- Breaking headlines and Hollywood gossip. Free entertainment videos and clips!
-- http://www.ivillage.com/
Looking For Mortgage Mae
- Let us help you find Mortgage Mae and more!
-- http://www.priceshopper.us/
Octane Tv!
- Watch Free Motorized Videos. Drifting, Racing, Crashing Cars, Motorcycles & Hot Girls
-- http://www.octanetv.com/
Mortgage Mae News
US Government seizes control of mortgage giants Fannie Mae and Freddie ... - Baltimore Sun
WASHINGTON (AP) _ The Bush administration's seizure of troubled mortgage giants Fannie Mae and Freddie Mac is potentially a $200 billion bet that it will help reverse a prolonged housing and credit crisis. The historic move announced Sunday won ...
Read more...European stocks surge on Fannie-Freddie plan - International Herald Tribune
LONDON : European shares soared in early trade on Monday, bouncing from last week's slump, after the U.S. government seized control of major U.S. mortgage firms Fannie Mae and Freddie Mac . At 8:20 a.m., the FTSEurofirst 300 was up 3.6 percent at 1 ...
Read more...Europe shares jump on Fannie, Freddie bailout-bookies - Reuters UK
LONDON, Sept 8 (Reuters) - European shares are seen opening sharply higher on Monday, according to financial bookmakers, on positive sentiment after the U.S. government on Sunday seized control of two mortgage and finance companies. Britain's FTSE ...
Read more...US Government seizes control of mortgage giants Fannie Mae and Freddie ... - Baltimore Sun
WASHINGTON (AP) _ The Bush administration's seizure of troubled mortgage giants Fannie Mae and Freddie Mac is potentially a $200 billion bet that it will help reverse a prolonged housing and credit crisis. The historic move announced Sunday won ...
Read more...U.S. takes over mortgage giants - Baltimore Sun
The U.S. government announced yesterday that it was taking control of mortgage giants Fannie Mae and Freddie Mac , saying the companies' weakened finances had made it impossible for them to carry out their missions of supporting the struggling ...
Read more...Asian stocks soar after Freddie Mac, Fannie Mae bailouts - Detroit Free Press
Asian stock markets soared Monday after Washington announced a bailout of mortgage giants Fannie Mae and Freddie Mac — a move that could help bolster a shaky U.S. housing market and renew global investor confidence. Japan’s benchmark Nikkei 225 ...
Read more...MORTGAGE RESCUE GIVES HOPE TO CREDIT, HOUSING MARKETS - Globe and Mail
WASHINGTON -- The U.S. government has seized control of giant mortgage lenders Fannie Mae and Freddie Mac , warning that letting them fail would have caused cascading financial chaos, wiping out vast swaths of household wealth and blocking millions ...
Read more...European stocks surge after US mortgage rescue - The Independent
European shares bounced back in early trade today after the US government seized control of major US mortgage firms Fannie Mae and Freddie Mac . At 0720 GMT, the FTSEurofirst 300 was up 3.6 per cent at 1,165.79. France's CAC-40, Germany's DAX and the ...
Read more...Fannie Mae and Freddie Mac bailed out by US Government - Times Online
The US Government took control of Freddie Mac and Fannie Mae, the stricken companies that underpin the American mortgage market, yesterday and promised to inject up to £110 billion of taxpayers’ money to keep them afloat. The cash infusion was one ...
Read more...Mortgage takeovers 'may boost UK' - Guardian Unlimited
British mortgage experts have welcomed the historic US government takeover of mortgage giants Fannie Mae and Freddie Mac. The Bush administration has announced it is taking control of the two institutions to avert the potential for major financial ...
Read more...