Getting yourself out of debt is not one of the easiest things you can do. Most people inadvertently find themselves in such a situation. With the current state of the economy, and everyone trying hard to make ends meet, not to mention inflation and high rates of unemployment, one is often left with no choice than to take out loans which could always result in debt. More so, if you already have a lot of other debts to settle. Should you lose hope? What leads to debt?
One of the most common ways that people fall into serious debt is by using a credit card. This method of payment is preferred by a large number of people for various reasons. In addition to it being a more secure way of carrying money, it also makes payment easier especially if you are purchasing things from an online store. However, it is a widely acknowledged fact, that people often spend more when they use a credit card than they would if they had hard cash. This could be attributed to the varying limits that come with the use of a credit card. Debt free advice in this regard is therefore essential.
When it comes to debt free advice, you need to keep in mind that apart from personal loans and credit cards, mortgages too often lead to debt. It's important to point out regarding debt free advice, that the result of all this would be the person with excess debt having to liquidate their assets to get out of this mess. In the worst case, a person would have to file bankruptcy, which would be detrimental to your credit rating, thereby affecting future prospects of taking out loans.
How to deal with debt
If you are already in debt, set aside the amount you would need to pay to different lenders each month, and do not use that money for any other purpose.
Debt free advice #2 - Refrain from splurging for a while. Saving your money would be a great way to start off! You can find ways to increase your income, such as by investing your money somewhere so that you earn an amount in return.
Debt free advice #3- Stop using a credit card!
One of the most common ways that people fall into serious debt is by using a credit card. This method of payment is preferred by a large number of people for various reasons. In addition to it being a more secure way of carrying money, it also makes payment easier especially if you are purchasing things from an online store. However, it is a widely acknowledged fact, that people often spend more when they use a credit card than they would if they had hard cash. This could be attributed to the varying limits that come with the use of a credit card. Debt free advice in this regard is therefore essential.
When it comes to debt free advice, you need to keep in mind that apart from personal loans and credit cards, mortgages too often lead to debt. It's important to point out regarding debt free advice, that the result of all this would be the person with excess debt having to liquidate their assets to get out of this mess. In the worst case, a person would have to file bankruptcy, which would be detrimental to your credit rating, thereby affecting future prospects of taking out loans.
How to deal with debt
If you are already in debt, set aside the amount you would need to pay to different lenders each month, and do not use that money for any other purpose.
Debt free advice #2 - Refrain from splurging for a while. Saving your money would be a great way to start off! You can find ways to increase your income, such as by investing your money somewhere so that you earn an amount in return.
Debt free advice #3- Stop using a credit card!
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