1. Tackling Debt One at a Time
Debt: The Real Foe
When it comes to building wealth, you have one real foe: Debt. Yes, your
obligations to your creditors hinder you from becoming rich. Think about it: If
you had no car payments to make, no credit card bills to pay, or no student loans
to take care of, just how much of your income could go to your savings and
retirement funds? A huge chunk, right? Without debt, you can even finish paying
for the house years earlier!
Statistics from the Federal Reserve reveal just how much of an enemy debt is on
the average American household’s quest to become financially rich: The average
household credit card debt is pegged at $7,093 but when only the indebted
household is considered, the average debt more than doubles at $15,204. The
average student loan debt is $33,005 while the average mortgage debt is almost
$150,000. These debts are only the tip of the iceberg. You also have to factor in
the common things that American breadwinners normally continue to pay for
month after month—a second car and personal loans taken from other sources,
among others.
All in all, the monthly payments for these debts can eat up a third or more of
one’s take home pay. Debts can make you lose opportunities to build wealth. For
instance, if you were paying $1,500 per month for all your financial obligations,
imagine just how much that same amount would grow in ten or twenty years if
you were to invest it in mutual funds that offered a rate of return of 10 percent
per year? As you can see, you can fatten your nest egg faster if you didn’t have to
make all these monthly payments.
The reality, however, is that many American households have to make these
monthly payments. They are saddled with seemingly insurmountable debt. The
figures are so large that getting out of its deadly claws is seen as an impossible
feat. However, if you really want to, it is still possible to get out debt without
declaring bankruptcy. Make no mistake, the process is not going to be easy. It will
take a lot of sacrifice from your end. But once you can finally call yourself debtfree, the benefits are going to be well-worth it.

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Money Management Tips.
Other related info you might be interested in:
Challenging yourself to do a Total Money Makeover
Debunking Fallacies about Debt
Making Wise Decisions on Home Equity Loans