Sunday, March 26, 2017

Addressing The Balance!

at the time of bankruptcy
No matter what position you’re in financially, the grim specter of debt hangs over us in one way or another, and it is an unwanted area of stress in our lives. The feeling of being in debt is so crippling that we could spend a lot of money to pay off a credit card bill, but it was only enough to pay off the interest, so not only are we in the same amount of debt, we are currently worse off for even attempting to pay it! Being in a cycle of debt when we have limited everyday finances to play with is difficult, but there are things that you can do.

Set Up Automatic Payments

Paying off debt, however little needs to be a priority. If you don’t see the money in your account, then it’s not there, and the “out of sight, out of mind” method can be especially helpful in these circumstances. If you don’t set up automatic deductions, then you physically have to make the payments every month, which means you can decide to not pay it and spend the money on something nice for yourself. If you set up the money to come out on the same day each month, you know that you have to factor it into your spending habits, especially if the payment defaults because you’ve already spent it, which will leave you in more debt!

Evaluate Your Spending Habits

It is a difficult thing to admit when we are pointlessly spending money on things we don’t need. But we argue that we do need them. And that “essential” cup of takeaway coffee becomes the straw that broke the camel’s back! By looking at how much you spend, you can start to really break down the areas that are making the biggest drain on your finances. This is where you need to be ruthless, especially if you are in a massive spiral of debt, and by starting to address the balance (pun intended) you can get out of debt faster.

Support Is Out There For You

You could get help from a credit counseling agency, who will give you advice on how to better prepare your spending habits, or if you feel overwhelmed by the stress of it all, there is bankruptcy support available too. Bankruptcy is something to think about if you really feel there is no way out of the spiral. It can be a release for a lot of people because it can feel like they’ve escaped their debt. And while that is true, it does have an impact on things like your credit score.

Debt is one of the biggest stresses in the world we live in today. The temptation to get short-term loans or to refinance a loan with another loan is all too common now, and it is a sign of how we view money. It is not a disposable income, and we all appear to spend outside of our means. So by taking charge of your debt with proactive steps, you can start to get out of the debt hole.

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