Do you know what your “debt traps” are? What you need to know to avoid debt traps and how to get out once you are caught in the financial quagmire? We love to use our credit cards and involuntarily love debt as well! Knowing that you can easily and conveniently have access to expensive items today and pay later…
To have a clearer picture about how our debts build up, you simply have to check your bills on a monthly basis and figure out how much you owe on autos, bank loans and other financed actions.
Keep in mind, however, that a lot of debt can be dangerous, especially for people having low income and students. Too much debt can cause anxiety, remorse and even a depressed state of mind which leads to your inability to concentrate.
If this takes place, you need to accept the fact that debt has control of you and start regaining control as soon as possible.
Read the following helpful suggestions to avoid digging yourself into a serious debt hole:
First of all, don’t buy items you can’t afford. Remember that if you are patient, you will be able to gradually buy all the things you need and dream of.
Figure what your superfluous extra expenditures are, such as cigarettes, dining out, take away meals, CDs, or DVDs and quit spending money on them.
If you receive any credit card solicitations, do not reply unless you have a secure job and feel ready to take on this burden.
In order to easily and rapidly manage your finances from home, sign up for your bank’s online banking service. In a lot of banks, it’s free and worth having this extra and immediate access to your accounts and ability to pay your bills online.
Give yourself the pleasure of having one main activity per year, such as a shopping trip, a new second-hand car, a journey with friends, etc.
Don’t consider what your friends spend their money on. In most of cases, they’re as heavily into debt as you.
If you can manage your expenditures well during the year, you will be able to take control of your debt too, avoid your debt traps and saving a lot of money for the items you’ve dreamt of!
Learn how to prepare and follow a sound money management plan which helps you use money, credit, and debt to their greatest potential for your financial benefit, not your creditors.