I will be debt-free by Christmas.

In just a few weeks, I will have repaid all my consumer debt. Only my mortgage will remain. It’s taken a lot of hard work and sacrifice, but the end is near. I’m wondering, though, if I’m ready for the transition.

For three years, I’ve focused on becoming debt-free. Many of you are making the same journey, and you’ve begun to e-mail me the same question: What’s it like living debt-free?

I assume that becoming and living debt-free require a similar skill set. Frugality is probably just as important to remaining debt-free as it is to reaching that goal in the first place. The concepts I learned while using the Debt Snowball can probably also be used to save for things like cars or new furniture. An abundant emergency fund seems natural, too, as do fully-funded retirement accounts.

But I worry about lifestyle inflation. I suppose it’s natural for a person to relax a bit once he’s paid off his debts, to allow himself a few more indulgences (though paid with cash rather than credit). How do you keep from reverting to old habits? How do you keep from spending too much?

How is living debt-free different than becoming debt-free?

GRS is committed to helping our readers save and achieve your financial goals.Savings interest rates may be low, but that’s all the more reason to shop for the best rate.Find the highest savings interest rate from Ally Bank, Capital One 360, Everbank, and more.

This article is about Ask the Readers, Debt, Real-Life  

Disclaimer: This content is not provided or commissioned by American Express. Opinions expressed here are author's alone, not those of American Express, and have not been reviewed, approved or otherwise endorsed by American Express. This site may be compensated through American Express Affiliate Program.

Discover is a paid advertiser of this site. Reasonable efforts are made to maintain accurate information. See the Discover online credit card application for full terms and conditions on offers and rewards.