Robert Kiyosaki says that there is good debt and there is bad debt.Â The difference between the good debt and the bad debt is the motivation behind the borrowing of money.Â When you borrow money to use for investment that will bring aboutÂ generating profit or income for you, that is good debt.Â Bad debt is brought about by using the money on doodads (stuffs which do not produce income) or liabilities (eg, big cars, expensive jewellery).
Bad debt has been becoming a society concern in the US, where credit card debt is on the rise.Â When you knowingly or unknowingly gets into credit card debt, what measures will you take in trying to pay them off?Â Cut down on the cup of latte from Starbucks?
Seattle Times reports of how one 26 year-old guy did the extreme to pay off his credit card debt.Â Andy Bussell, 26, a student at California State University, Fullerton, chalked up $10,000 in credit card debt in July 2005.Â The debt drives him to live in his pickup for the past 19 months.
California State University, Fullerton, senior Andy Bussell heads home â€” to a white Toyota Tacoma with a twin-size mattress in the truck bed, a camper shell for protection and black curtains for privacy.
The 26-year-old has been living in his truck for nearly 19 months, skirting rules against sleeping in vehicles while otherwise living the life of a mainstream student. What started out as a way to save some cash has turned into a journey of self-reliance and independence.
The odyssey began in 2005. Bussell was working full time as a “Mac genius” at the Apple Store in Newport Beach, sharing a $1,600-per-month apartment. He had racked up more than $10,000 in credit-card debt and was struggling to pay for school and save money. So on July 29, 2005, he started living in his truck, with the goal of lasting one year.
“Even though I had a good job, I was tired of living paycheck to paycheck and not making any headway with my credit cards,” he said. “I’ve learned that I can push myself, break down my own boundaries. I’ve been able to learn that I can change and adapt to different kinds of situations.”
The credit-card debt, which was part of the reason for his decision to live in a vehicle, is nearly paid off.
Living at the back of the truck for 19 months!Â That is what I calledÂ determination to get out of debt!Â Bravo!