If you think you can get out of debt, most probably you will. Your attitude is often the determinant factor. This, however, has little to do with positive thinking; rather, it has everything to do with the determination of the human spirit, which God has bestowed on each one of us. Harness that human spirit; if you find the will is strong but flesh is weak, call upon the Almighty God to give you strength.

If you only buy what you need - not what you want - you will never get into debt.

If you "buy on credit" you are in fact limiting your choices in future. Just think about that.

Everyone can be debt free by committing to becoming debt free, no matter how long it may take. The problem with most people is that they don't want it badly enough, and that they always come up with more excuses to spend.

Why do people go into debt?

Firstly, people go into debt through deficit spending. A deficit occurs when spending exceeds income at any given time. An accumulated deficit become a debt, and a debt is a financial obligation or liability to pay. To avoid deficit spending, spend below your means.

Secondly, many people get into debt due to unforeseeable circumstances, such as exorbitant medical bills as a result of medical emergency, or loss of a job. However, these are rare occurrences. So, keep yourself healthy, physically, emotionally, and mentally. Eat right and exercise regularly to stay healthy. A clean bill of health keeps the doctor away. In addition, good time management may also take away much of the stress in everyday life to maintain your emotional and mental health. Furthermore, a healthy marriage not only reduces daily stress but also avoids financial disaster resulting from a divorce settlement.

Thirdly, many people get into debt by personal choice. Yes, they simply choose to spend without thinking by buying the things they don't need with the money they don't have. Or they make a wrong financial decision, such as a bad investment. Learn to live below your means. Be cautious of any financial commitment or investment. Look before you leap.

Fourthly, many people get into debt through self-denial. Many argue that debt is good: after all, a great portion of our GDP comes from consumers' spending. It is in the American culture to buy "on credit" and debt is no more than "past due payments." Now that the price of gasoline is soaring and inflation is escalating, many Americans begin to feel the pinch, and they should be, because debt is debt.

Finally, many people get into debt simply because of their ignorance. Yes, many people don't' know anything about the APR on their credit cards: they have no clue as to how much they are paying for their interests on their credit card; nor do they know the implications of "minimum payments." It is this ignorance among the general public that has propelled the rate of defaults and foreclosures in this country. Educate yourself on money matters.

In life, you must learn to give up on some of the extras. This is critical to getting out of the mountain of debt you may have. Break free from financial bondage, which may shackle you for the rest of your life, limiting your choices further down the road.

Copyright (c) 2008 Stephen Lau