If you always pay with the card for shopping, without ever checking the balance from time to time, you are missing a realistic budget and you are often willing to spend impulsively on small things, then most likely, if you do not already, you will end up you are facing very important issues regarding the size of your debts. It’s like giving a direct fire to the money!
Surprisingly or not, many people do not know or really do not want to pay their debts and rely on their rolling endlessly. Here are a number of reasons why you lie side by side in debt and what you can do in this regard.
Your expenses are too high
Things are clear! If you have been financially crowded in recent years and have accumulated monthly payments: a huge bank rate for your new home, a second rate for the car, with related insurance premiums, which are also expensive as well as other fixed expenses that cover you or even seriously exceed most of the monthly income then surely you will never have enough money in the near future to pay off your debts. On the contrary, the financial situation will deteriorate.
If you want to get rid of debt, you have to seriously reduce your expenses. Change the new car with a used one. Switch from a 3-room apartment to a 2-room apartment or even a studio apartment if you live alone. Give up a period for CASCO insurance, or delay the payment of life insurance premiums or cancel your subscription to the fitness room. It is healthy for your finances to go over all unnecessary expenses. Do everything you can to reduce expenses so you can take advantage of your disposable income to repay your debts.
You have no additional income
If you have only one source of income, surely your expenses are exclusively dependent on it. It’s no secret that in order to be able to save money and pay off your debts, you should undertake pleasant activities that will supplement your income.
You can work independently or even part-time if you secure a few million USD extras per month. After a while, you can then take advantage of this money to develop a small business, which can turn into a pleasant way to get additional cash flow, Lifehack shows.
You have no record of your expenses
Do you know where your money goes every month? If you look at the history of transactions in the bank account and you remain puzzled: ” What exactly did I spend so much money on? “Then you have a serious problem.
Keep a clear record of your expenses. Whether you do this on a notebook or in an Excel file, it will help you track your financial activities so you have a better idea of what you bought and where. Thus, you can adjust for the coming months the unnecessary expenses that seriously erode your income, month by month, year by year.
Don’t make the most of banking services
Have you often forgotten to pay the bill for electricity or telephone? Rate the leasing company? The technology that exists today in terms of banking services available to the end customer is incredible. You can literally pay your debts on autopilot, monthly, directly from your current account.
All you have to do is reserve just a few minutes to set up an automatic transaction from your current account for certain monthly invoices.
You are wrong with time management
How many hours a week do you work? 40? Do you do anything after leaving work to make some extra money? Do you improve your education and professional training to increase your value in the labor market? Are you part of social networks, such as LinkedIn or Facebook, to increase your level of influence?
Expenses, if you give them free rein, will almost always increase over time. If you do not manage your time wisely, you will not increase your ability to earn more, to keep up with these expenses, which will keep you at the same level of income and sink you further into debt. You can always increase your ability to earn more.
Spend in a cheer with your credit card
The debts accumulated from the credit cards represent absolutely the most unhealthy type of debt you can have, because the interest rates are very high, 20-30% or even more. Literally, tens of millions of USD are taken into account in just a few years. However, many people consider credit cards as a way to buy things without actually having to pay for them.
But the truth is that the amount of payment will increase and increase over time, as you spend more and eventually you will not be able to get another loan. At that time, you will be required to pay the debt account up to now before you can buy anything else. This situation is not a way of life. The pressure of interest will influence your lifestyle.
Use credit cards wisely and only pay for things you can cover each month. The day when an imbalance appears on your credit card is when you start to collect millions of USD in interest as you spend more and it will be difficult for you.
You always come up with expensive things
The fastest way to get into debt and stay there for a long time is to start worrying about what others think about you. The truth is that not all of us earn the same huge amount of money on a monthly basis, but everyone prefers to behave as if they would, even if the benefit is short term.
Don’t worry about the image your car, house, clothes and everything else around you make up in society. Live the life you are able to live without getting into debt. At the end of the day, these things are just debts, nothing more.