Forgotten ways to unlock these 6 debt myths

Debt is so pervasive and it can be hard to escape. However, debt is a lifestyle choice. One you do not have to choose. Here are some forgotten ways to unlock these 6 debt myths to show you that it is possible to live without debt.[Tweet "Forgotten ways to unlock these 6 debt myths"]

Everyone has debt

Yes, many people do have a lot of debt. Car loans, student loans, home equity lines of credit, medical bills, business debt, credit cards and personal loans are all normal, right? However, just because everyone has debt, is that a good enough reason for you carry debt or go further into debt?[Tweet "Just because everyone has debt, is that a reason for you to go in debt? "]

All the normal debts look like a whole lot of stress to me. Besides not everyone has debt. I have been debt free for five years and there are numerous people who have decided it is time to get rid of debt for good out of their lives.

There is a simple way to avoid debt and that is to only buy things you can afford to pay for right now. If you do not have money, then you can't buy it. Yes, this way of living does force you to be super careful with money and to evaluate the purchases you are making.

Living on less than you make is a great way to escape the curse of debt. Saving for future expenses or emergencies should be a top priority and not a leftover thought.

Wouldn't you rather be different than everyone around you in this case, and not have any debt to struggle under for years? You would have a lot less stress and money in the bank to hedge against the unforeseen.

School debt is a good debt

Really? Because student loans have a lower interest rate? Or is it because you are investing in your education?

How is school debt a good debt when it enslaves so many people, who often can't get a job in their field, for decades after graduation?[Tweet "How is school debt a good debt when it enslaves so many people for years?"]

Not to mention the fact that if you absolutely had to file bankruptcy, your student loans are unable to be dismissed anyways, and you would still be stuck paying them? No thanks!

No one who is struggling to pay back the thousands of dollars of school loans after graduation would say that this mountain of debt is a good debt.

Education can be a great investment (that I know full well) with a great return on investment, providing you get a marketable degree. Debt as a result of education is not a good investment.

You can't go to college without debt

Well if that was the case, there would no reason for this blog to be in existence.

You can pay cash for school by working and going to a school you can afford. You may have to get super creative about paying for school, but it can be done without loans.

You can get a job working on campus and often, as a benefit, you will get free tuition. Apply for financial aid and accept all the grants you can (just not the loans!).

Take as many classes at the community college as you can. Work an extra job. Take a little longer going through school so you can pay cash for your classes. Apply for a lot of scholarships every year. Marry someone who likes to work hard and wants to pay for your school. Ha.

You'll always have a car payment

Oh yeah? Only if you keep buying new cars at the dealer every couple of years and never save up to buy a car for cash.

One idea, once you pay off your car note, keep the car, and continue to pay yourself a car payment until you have enough money to buy another car for cash.[Tweet "Pay yourself a car payment until there's enough money to buy another car."]

Another option is to pay cash for a beater car which only costs a couple thousand dollars. Then pay yourself a car payment so you can upgrade your car at a later date.

Repairing your vehicle yourself can save thousands and thousands of dollars, but if there are some repairs you can't make, have a good honest mechanic as a back-up. Either way, make sure you have a line item in your monthly budget for car repairs.

You need to build up a good credit score

Yes, but only if you are planning to continue borrowing money your entire life. The FICO score is based on how much debt you have borrowed, how well you pay it back, so you can borrow more debt and pay that back.

But what about buying a car or a home, don't you need a good credit score?

The car issue has already been covered, save up cash to purchase a vehicle you can afford. A credit score is non-essential when you lay out all the hundred dollar bills on the desk (I almost want to do this for my next car.... but I don't think my husband would let me).[Tweet "Your FICO score is based on revolving cycle of debt and paying it back. "]

Buying a home can be done one of two ways, either you have an excellent credit score or you go to a lender who will look at your whole financial picture, not just your credit score, and manually underwrite the loan. Or you could do what I am planning to do, work really, really hard and save a bunch of money to purchase a house for cash!

There are definitely ways to make purchases and get around using debt to receive a better interest rate.

Now your insurance rates are often determined in part by your credit score, but I would rather pay a little more on those costs instead of being shackled with debt.

Renting is just throwing money away

First, regardless of whether you rent or own, there is a monthly cost to have a roof over your head. In some markets, yes, the mortgage payment is cheaper up front than the rental payment, but that number is not the final cost.

When you own, you may have to pay private mortgage insurance along with property taxes, upkeep, and all repairs costs.

Renting allows you the freedom to save money on all of those expenses, and you do not need to put nearly as much down on an apartment as a house. If you need to, you can relocate much easier since you do not have to sell your house first.

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The best forgotten ways to unlock these six debt myths are a lifestyle choice which was fairly common until recently. However, it is not too late to return to a simpler way of handling your money without debt.

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1. Be different. Be the one without any debt. Only buy what you can afford now.
2. Invest in your education to get the maximum benefit by paying cash.
3. Think outside the box for ways to save and go to school for free.
4. Pay yourself a car payment until you have enough money to buy a new car.
5. Consider alternative ways to making big purchases without using credit.
6. Carefully step into home ownership after counting all the costs.