You or debt? Who should control your life?
Wake up America! Our country is suffering, and if each and every one of its citizen doesn’t become a responsible consumer, then trust me, USA will witness an economic collapse!
Life has never been easier in terms of gadgets, luxury, transport, and what not. But wherever you look, there are debts. The reason is simple; people aim for objects and goodies that they can’t afford!
But humans are humans, they will achieve whatever they want, by hook or crook! And this is where credit cards, payday loans, personal loans, mortgages, and other forms of credit play their terrific roles!
What makes you fall into debts?
No one is to be blamed in this case! To be more definite, it's your desires. Since the ancient times, sages have been telling us to steer away from them! It only indulges you to spend out of your means!
On top of that play many psychological factors. Like say, it’s like an addiction. The feeling of getting something with the need to pay later, works as a mental health issue, you can say!
But obviously, at the end of the day, it is you, who’s inviting the debts!
A listing of key factors that force you to incur debt:
1 Oh, credit cards, the devil you!
“You got to have at least one credit card for a good credit portfolio”.
This basic universal truth is manipulated to such an extent that now you need one rewards card, one store card, 50,000 credit cards, one for shopping, one for eating, one for entertainment, one for this, one for that, one for him, one for her, one for you, one for your great granddad,... And one, and one and one!
Then when you get the bills? Oh my god!
What’s the remedy? One simple rule of the thumb, only use your credit card for emergency purposes!
For your day to day expenses, shift to cash or use a secured credit card, which is far better than traditional credit cards I believe!
2 Payday loans- Why do they even exist?
I absolutely have no idea, why do people even go for these loans!
One payday loan is equivalent to 2 maxed out credit cards! My suggestion is, the next time anyone asks you about payday loans, shrug and say you know nothing and go total cold turkey!
Remember, payday loans are a great way for wicked and clever people to launder money! I mean who puts an interest rate of freakin 300% and more on loans?!!!
So, the habit of taking out payday loans with the expectation of clearing it on your arrival of next paycheck is preposterous!
3 You don’t understand what you need and what you want:
When you can’t understand what you need and what you want, then you can never be a smart guy with finances.
Expenses for ‘things you need’ are utility bills, grocery bills, insurance premiums, and all those without which you can’t sustain your day-to-day livelihood!
While ‘things you want’ are definitely a big house, cashmere clothing, bottle of french Sauvignon, a playstation, etc.!
If you look minutely, you will see that your wants are responsible for your heavy debt amounts.
4 You don’t have a proper budget:
Are you an admirer of Mr. Warren Buffett? That man still uses the old Nokia black and white model. Moreover, he also follows a budget and says his personal day to day expense is not more than $200. I think that’s very low for a multi-billionaire!
We should learn a couple of things from him. Remember, rich people have rich money habits.
As a starter, go for the 50-20-30 budgeting! It’s easy to follow and pretty effective, too. In this budgeting technique, you keep aside 20% of your income for savings; in your case, it can be used for debt payments as it is a big liability.
50% of your salary is to be used for day to day expenses, where you can include your groceries, household bills, etc.
The rest 30% is flexible and you can use it for extra debt payments or extra savings, or if all of your purposes are satisfied, then you can use it for partying and clubbing and whatever your heart wants!
How not to let debt control your life:
It might feel that your debts are huge. In other words, it seems that you can never ever come out of your debts.
But there has to be some way to chain your debts, isn’t it? There’s got to be a way where you will order your debts and not let debt have the upper hand and rule your life!
1 The good old debt consolidation:
Never hesitate to consolidate your debts. Read how consolidation works.
This process is designed by debt relief companies to help you bring your debts together and manage your payments and debts as per your likes!
So, don’t waste much time and think smartly! Consolidation can actually help you to clear your debts and at the same time maintain a good credit score!
2 Debt settlement
This is the next option that will definitely sound appealing to you! You have a big chance to settle your debts pennies on dollars.
Our financial advisors are here to help you out with any queries regarding debt settlement.
So go ahead and give us a call whenever you want.
This is the last resort! To be exact you go for bankruptcy when debts have conquered you and it rules you badly!
Chapter 7 bankruptcy will give you a fresh start by charging off most of your debts, and in some cases, 100% of your debts might get charged off! But it has one problem, your assets might get compromised.
But Chapter 13 bankruptcy is somewhat different and it will give you a debt repayment plan to follow up your debts. Here also, some of your unsecured and consumer debts might get charged off!