Don't Consolidate… Eliminate!
-by Frank Lunn

I don't know about you, but I'm ready for a revolution! I'm not certain if it will change the whole world, but I know what I am about to share certainly changed my world. Could you imagine what it would be like to have no debts? Seriously, no debts at all — zip, nada, zero, nothing owed to anyone. Think about it, everything you have, you own. Sure you still have expenses, but imagine if you had no car payments, no mortgage, no creditors asking for payment, no credit card bills, no worries about losing what you have or how to keep your creditors off your back. What would that be like? How much flexibility would that give you in your life? If you had no debts, cash in the bank, a car to drive, a house to live in, what would your life be like? How much would you need to earn to maintain your life? Could you see some possibilities opening up to what you could do, where you could live, what you want to do for a living… with passion rather than necessity?

I need to warn you that this is all very contrarian and against conventional wisdom. Freedom from debts is a worthy goal, but not common and not part of our use-it-now, pay-for-it-later, entitlement consumption society. Don’t expect people to understand. Don’t expect your banker or accountant or neighbor or boss or co-workers to cheer you on and affirm your decision to become debt free. If you make this choice, it will be worthwhile, but certainly challenging and more crock-pot than microwave as far as a time frame. You have an opportunity before you to take an uncommon path that will lead to an uncommon future. You have an opportunity to lead yourself and lead your family out of bondage to the Promised Land of freedom.

Yea, Though I Walk Through The Valley Of The Shadow Of Debt…
We live in a great nation and we are free. Our nation is built around consumption. Please don’t misunderstand, I am a capitalist. I am an entrepreneur and I believe in fiscal responsibility. I believe it begins at home and for our families as the top priority. I believe that debt is a burden and diminishes your choices and your family's future.

In the Bible, Proverbs 22:7 says, “The rich rule over the poor, and the borrower is servant to the lender.” Basically, one person's debt is another person's wealth. If you had a chance which one would you rather be, the borrower working tomorrow to pay for yesterday's fun, or would you rather be the lender letting money do the work?

Benjamin Franklin discussed debt in Poor Richard’s Almanac. “Think what you do when you run into debt; you give another power over your liberty. If you cannot pay on time, you will be ashamed to see your creditor; you will be in fear when you speak to him; you will make poor pitiful sneaking excuses, and by degrees, come to lose your veracity, and sink into base, downright lying….” Ouch! Have you ever felt these feelings? Now, imagine the other side. Imagine what it would be like to be completely debt free without the pressure from bills, collection companies, credit cards and the ever increasing strain and stress of debt?

Several generations ago, credit was not easy to get. Debt was definitely shunned as a shameful method of acquiring. That has certainly changed and it has changed because the people who benefit the most are the ones who prey off consumers. Debt has created an entitlement that has never before been seen in this country or anytime in the history of mankind. The entitlement mentality of letting us think that we deserve everything right now has caused us to give up discipline and saving and instead has allowed us to go into the future and get ourselves into trouble by borrowing from that same future to pay for today. Unfortunately, it is quicksand we cannot get out of without changing our habits.

Debt does have it's place and it's value in creating wealth. The principle here is simple. Debt should only be used when it provides an economic return (cash flow or revenue) but never when it comes at a cost (expense). It is actually a compound problem because not only do advertisers and the system set up to make us think that we need more than we really do – the difference between needs and wants is definitely blurred. Not only do we end up spending more than we need to, but most times we end up doing this on credit and it makes the actual purchase, that we didn’t need in the first place, cost sometimes as much as three times what we actually should have paid for it. It is really a double problem. The ease of credit has made people lose their respect for money and it has taken away any fear of consequences. With bankruptcies on the rise, people feel like the entitlement philosophy allows them to do whatever they want to do without consequences. Not so. There are always consequences. Debt is part of our lives every day and it has the potential to ruin more than credit ratings. It destroys families and it can get in the way of our future happiness.

College graduates landing good paying jobs are finding themselves among the working poor due to the high debts accrued from student loans. Increasing costs of medical care and cutting of pension plans force the older workers into working longer for less. With layoffs and plant closings affecting thousands in the automotive industry, the financial crisis facing millions of all age groups is growing at an astronomical rate never before experienced. Today’s workplace is far different from our grandparents; there are not any guarantees for your financial future, such as, working at the same job for a lifetime and retiring with a comfortable pension. Whether you’re just starting out or looking forward to retirement, it is imperative to know your financial situation and take the necessary steps to secure your future.

There is an alternative path and one that requires no formal or specialized education. It does not require you to get another job or start a business. It is an entrepreneurial strategy and method to make changes in your choices and to turn your financial situation around from one of a borrower to one of a lender. This is not a quick fix or magic bullet or an overnight cure. It is possible and it is in your control. Sure it may take some time, but time will pass anyway. The real question is in the next 5 years will you go further into debt and personal bondage, or will you escape and begin traveling the road to creating wealth? In five years will you own your life or will you still be renting it on the lifetime installment plan?

By assessing the reality of your financial situation and taking personal responsibility for the opportunities to completely eliminate the burden of debt with the opportunities and strategies others (including myself) have used, you will immediately feel a change in your financial well-being. Action now on this path is securing your future by eliminating your debt. The road to becoming debt-free will not be easy or fast; however, you do have the power and the means to get out of debt and on the road to financial success. Stay tuned, to be continued......

Frank F. Lunn is an expert in leadership, marketing and small business entrepreneurship. Frank is the author of Carpe Aqualis! "Seize the Wave" - 7 Essential Surfing Skills to Revolutionize Your Business and Personal Life. Please visit KahunaPower.com to find additional motivating articles and success building tips.