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In this article, you will learn:

• The real reason that you are in debt
• The Five Debt Myths, which should really be called the Five Debt Lies

The Five Worst Debt Myths

The first task is to rid yourself of the 5 worst Debt Myths. Here they are.

MYTH #1 The Myth Of Higher Income

“If I could just make more money, I could get out of debt.”

Indeed, statistics show that the higher the income, the HIGHER is the debt. So, forget about getting out of debt by increasing your income. That does NOT work. Only lowering your expenses to LESS than your income will work. It’s like a person who is always late saying that he just needs a faster car! We all know that a faster car will not make him early. Similarly, higher income will not get you out of debt.

MYTH #2 The Myth Of Small Debt

“It’s just one small debt so it doesn’t really matter.”

Indeed, statistics show that people who believe that small debts are OK have large debt. It’s only those people who believe that any debt is terrible who actually are out of debt.

MYTH #3 The Myth Of Low Interest Rate

“Debt is OK as long as the interest rate is low or zero.”

Indeed, mathematics shows that even a reasonable interest rate will dramatically increase the cost of your purchase. A home purchased with a conventional mortgage at reasonable interest rates and eventually paid off will cost the unfortunate homeowner about TWICE the original purchase price of the home. Why would you willingly pay a half-million dollars for a $250,000 home? Of course, I am not saying that you should pay all-cash for your home. But, I am saying that, if you have no other debt, then you can pay down your mortgage very fast, likely in 10 years instead of 30 years.

MYTH #4 The Myth Of Inflation

“My debt is OK as long as inflation will bail me out later.”

Indeed, reality shows that though the property may well go up substantially over the years, you may not be able to survive financially during those years and may need to force-sell your home in the meantime, without enjoying the benefits of that inflation.

MYTH #5 The Myth Of Entitlement

“It’s OK to get into debt for this purchase because I deserve it. You only live once!”

Indeed, only those who are in debt say such things. Those who are not in debt wait till they have the cash before they buy anything, even if they really want it.

Identify the Myth that you “act as if you believe”. Then, eliminate by creating the antidote statement. For example, if you act as if you believe that small extra expenses are OK, then say to yourself “every additional extra expense is poison”.

I invite your comments below on these (and other) “debt myths” – how are they ruining your life?

Today I want to spend a little time just starting you down the path to getting out of debt. I want you to experience the exhilaration that comes from movement – taking steps toward your goal of debt-free living!

Step One To Get Out Of Debt

Step One is simple. All you have to do is admit which Level of Debt Awareness you are at. Refer back to my previous article if you need help with this.

Step Two To Get Out Of Debt

Step Two is to record FIVE ways you can implement to move from the level you are at now to just one level up. That’s all.

Debt is PSYCHOLOGICAL… it is not FINANCIAL. You get out of debt by working on your mind, not on your pocketbook.

What mental roadblocks are you finding that keep you in debt? Share in the comments below…

To get out of debt, you must know the Debt Awareness Levels. There are 4 Levels. So, let’s learn them.

Debt Awareness Level 1: You are in debt and in denial

At Level 1, you make statements like “I’m really not in debt” and “I’m only in debt temporarily” and “I’m in debt only because of xxx” and “I’ll can be out of debt any time I choose” and “As soon as I get my job back, I’ll be out of debt”. These are all self-delusions. People are either in debt their whole life or they have savings and no debt all their life.

Debt Awareness Level 2: You are in debt and you know you are, but you do not know many details

At Level 2, you have admitted that you are in debt, but you are unsure of the details. You do not know exactly how much you owe on your mortgage, or on your car loan, or on any of the department store cards, or on your credit cards, etc. You do not know the interest rates. You do not know the repayment options. You have excuses like “well, my balances change every day so there is really no way to know”.

Debt Awareness Level 3: You are in debt and you have all the details

You have all details, in one place, neatly printed on paper, likely on a computerized spreadsheet so that it is easily and neatly updated. You have the name of every debt, the balance as of the first day of every month, the interest rate, the repayment options, etc. By the way, if you are in this elite group, you represent less than 10% of all those who are in debt. Bravo.

Debt Awareness Level 4: You are in debt and you have all the details and your debt is dropping monthly

You know your numbers. You track your numbers monthly. You are wise with your expenses. You spend LESS than you earn. Your debt is decreasing. You are in a super-elite group of about 2% of all those who are in debt.

This is where you want to be.

So where ARE you on the scale – and how do you plan to get to Level 4? Comment below!

Debt is a plague that robs you of your life.

The Book of Proverbs says “the borrower is slave to the lender”. Shakespeare gave this advice: “neither a borrower nor a lender be”.

So how did most people in the Western World get so far into Debt Slavery?

The Plague of Debt began when banks, credit card companies, department stores, travel companies etc. realized that if they used really powerful subliminal messaging and other highly effective but suspicious means, then they could increase their sales.

They began putting faded pictures of seductive women hidden in print ads. They began scenting the air of hotels, stores & casinos with fragrances that encourage taking out your wallet and spending. Movie theaters began flashing pictures of popcorn too fast for you to see consciously.

But, there is now something powerful you can do about it to GET YOURSELF OUT OF DEBT.

You will learn how to get out of debt. Fast. Permanently. More on this new method to come. First, a bit of history…

Companies began listening more to shareholders’ greed rather than integrity and reason. Giant computer programs now analyze your behavior constantly and every time you do anything. Every service you use (like your credit cards) and every item that you buy in every store – all that information is captured, processed and sold to others who figure out the best way to market directly to you using your own information.

Tens of thousands of ads hit your subconscious every day. Not a single one of them encourages reason, caution & savings. Every one of them brilliantly displays the benefits of over-spending. And, so you spend. And, over-spend.

Every possible way is used to cajole you into doing what advertisers and merchants want. If an ad does not work, it is discarded. If an ad works, it is enhanced and bettered until it works even more powerfully – on you!

So how do you fight the flood of “get into debt messages”? By the simplest means: becoming aware of your debt level. In my upcoming articles I will spell this out in detail.

In the meantime, I’d like to hear your thoughts on the methods banks and credit cards use to get you ensnared in the debt trap? Are you glad, sad or mad about it? Comment below!