Last time I was here, I wrote about a little slice of my financial life. I discussed how I began a life independent of parents but controlled by debt, and how I struggled to surpass it while living by my own. I then described myself today; finally free of debt, and finally standing up on my own two feet completely. And what do I do next? I thought about getting a housing loan.

This is the sad financial situation that many Americans find themselves in these days. The land of the free occupied by people in constant debt; starting from an innocent student loan, and then going on to paying mortgages for your family’s home. Factor it that loan for their vehicles, and the education plan that they have in place so that their children will not suffer as much debt. Only by seeing this big picture will you realize the truth; we are only as free as our debts allow us to be.

We must learn to change this habit if we are to surpass the hardships of this recession. Know that debts, by their own, are not too harmful to an individual or to our great country. But if the same individual gets buried in excessive debt, it could all blow up even if he or she had the capacity to pay them all. Roadblocks on the proverbial financial road are common, but like real roads, people don’t know where the detour is.

Only a select few things are more difficult than experiencing things that you own repossessed; and this can truly happen if you are unable to pay your debt. Avoid this as much as possible! If you really need to that loan, double-check if you have enough savings and extra income. That way, even if you do hit some bumps on the road, you’ll have enough reserves to offset the loss.

We must learn to practice frugality, in the end. It’s not really that hard to do, all you have to do is start learning the balance between frugalities and keeping yourself happy. Don’t save up to the point that you buy nothing for yourself. Instead, reward yourself from time to time after doing things that you consider a good job.