Sometimes in life you need to think how you can live a debt-free life, but some feel that’s the best way to go. However the simple fact is that out-of-control spending are serious problems that are not sustainable and have to be tackled head-on and you leave a debt-free life. The signs are all around us that this can’t continue for very much longer. People just live for the moment and not thinking what the future may bring.
Every one of us should be educated to be more aware of the traps and pitfalls to avoid when it comes to our personal finance. Not all of these things have happened to us, but we have close friends that we’ve helped who nearly went all the way, Right? Here’re tips to get your spending back in control.
For credit or debit cards users, if you always pay for your purchase with your card instead of paying in cash for your groceries, fuelling your car, and what have you, but now you make use of your credit or debit card for virtually all your regular daily purchases. If this sounds familiar, you are probably either in trouble or on the verge of it.
If you are already carrying a large balance on your card and for debit card user you may have exceeded your budget, new purchases will likely just hike up the amount of interest for credit card user that you’ll be charged each month. Paying off the minimal amount will not get you out of debt anytime soon.
Keep that in mind when you’re making your next purchase. It may help change your habits. And if you’re relying on credit because you just don’t have the cash, it’s time to take a realistic look at your budget and consider taking necessary changes.
Whenever you start avoiding paying your bills or you have a heap of unpaid bills that just keeps growing. And you start avoiding calls, so you don’t have to talk to angry and persistent bill collectors.
If this applies to you, you won’t be able to sidestep the problem forever.
You need to get a realistic sense of where you stand financially and begin to pay off your bills, cutting you spending or taking other necessary steps to get your financial life back on track.
You also need to address the cause of your debt, if you are spending more than you earn is the root cause and the path to misery. It is as simple as that.
The only way out to this is setting a budget and began to live within your means. It’s then you chose a more sustainable lifestyle. We know we couldn’t save the planet, if we couldn’t save ourselves from debt first.
Setting a budget is the only way you will know if your incoming earnings and spending match or preferably you have a little bit left over that you can begin to pay down your debts.
Once your creditors have been contacted, most will allow you to start a payment plan that will go a long way to get back in control. You may have to seek financial advice to roll all your debts into one single low-interest loan so that you can spread the payments.
TIAMIYU ADIO ISMAIL
