Getting out of financial trouble is always a worthwhile goal, and one that is certainly within your reach if you follow the right advice. While it is tricky to climb out of debt, it’s anything but hard to get into it, and for some of us it is something that seems to happen almost all on its own.
Of course, debt doesn’t happen on its own – at some stage, we borrow money in one way or another, in a way that we think will be sustainable, only to find out at a later point that it has not been.
Debt has a way of creeping up on you – few people find themselves deep in financial trouble because they made a single reckless purchase that cost a fortune. More often it is because what started as a trickle simply grew and grew, gradually, until it became a flood.
The good news is that it doesn’t have to be this way. If you can spot the red flags, then debt does not need to mount and become a millstone around your neck.
Do You Know How Much Money Is in Your Bank Account Right Now?
If you’re a veteran of the debt wars, then you’re almost certainly familiar with the feeling of handing over a credit or ATM card to pay for a purchase and inwardly begging for the payment to be approved. For too many of us, simply not knowing how bad the picture is makes it easier to deal with.
That is, of course, until the day the payment doesn’t go through and we need to know why. If you don’t know what’s in your bank, and you fear that you might be upset by the answer, then it’s time to rein in spending and look for more cash flow.
Do You Use Debt to Pay off Debt?
A commonly-used term in the consumer pages of any magazine or paper, “predatory lending” is quite a descriptive phrase. People in debt beyond their means are highly vulnerable and can be persuaded to take on new debt to pay off a credit card just for a moment of relief from an existing problem.
However, if your debt is becoming a constraint, it’s actually time to say no to payday loans, avoid scam websites promising fast debt solutions, and look for real help.
Do You Need to Use Credit to Pay for Essentials?
There is, it should be recognized, a difference between using a credit card in the grocery store because you’re three days from payday and it can be paid off then, and using the credit card because you have to. If you’re paying for the essentials with credit, then you are financially overextended.
When it comes to paying off that credit card, how are you doing it? If you’re only paying the minimum payment each time, then before long you won’t have room to spend on it – and what will you do for groceries then? If you regularly find yourself needing to use credit for essentials, then you need to speak to someone – because debt will only get worse from here without an intervention.
KT is a digital nomad who quit her job, bought a ticket somewhere, got a tan, fell in love with mother nature and she would never return to the normal life that society dictates. You can also connect with her on YouTube, Facebook, Twitter, and Instagram: @pinaynomad