How to live a debt-free life?

Debt in itself is neither a good or a bad thing. It's what you use your debt for that makes the difference. Allot of American households are in trouble, not because they have debts but because they have the wrong type of debts - namely they have used their debts to purchase consumer items that are easily disposable and have no value to them after they have been used of and disposed. Had this debt been used to buy money making assets, we would not be having the same issue about debt. The key to keeping your life debt-free is to live within your means. Make it a point to put about 10 percent of your income into a high interest savings account that you cannot touch. This will enable you to build up a cash savings. Then make it a point to live within the remaining 90 percent of your income. If you have debts like credit card debts and so on, talk to your debtors and work out a repayment schedule if you cannot pay off your debts at one go. Most of us fall into a trap of ignoring our debtors and as such, send them into a panic, which then results into more problems for us. As your savings grow and your debt comes down, your finances will be able to clear up. If you have a reputation for clearing your debts and you have cash, people will be more willing to lend you money. Which is important because bills have this nasty habit of needing to be paid then and there while income has a nasty way of only coming in during certain times of the year. Stop-gap debt is a necessary part of life. Its important to constantly think of ways of how you can bring money in and reduce the ways for money to go out. If you constantly think of how to do these things, you will find that your financial picture will brighten quite effectively.