This Is Why You Struggle To Get Away From Debt

 

 The main cause of failure of your financial arrangements is debt. The habit of going into debt has a big impact in the deterioration of your financial condition. 

We are sure that you already know this and already realize how dangerous debt is in your life, but all the necessities of life that you have to meet feel like urging you to always rely on debt. Moreover, with the presence of credit cards and other credit facilities that further facilitate the process of negotiations. Sometimes you need to go into debt, but before you go into debt, think about whether you can afford it later. Maybe you are confused why it is so difficult to live a life without debt, even though you have tried various ways so far. So, actually what is the cause of you difficulty free from debt? Here's the answer.

This Is Why You Struggle To Get Away From Debt

1. No Reserve Fund

You have to have control over your expenses, but not all expenses you can control. At any time, there is always the possibility of unexpected expenses, such as damaged cars, illness, natural disasters, or donations to others. Although unexpected, actually this expense you can overcome if you have a reserve fund that is always ready to be used at any time. If you don't have a backup fund and these things come, you're forced to use a credit card, and using a credit card is tantamount to increasing your debt in the future. Try to start having a stash of money for this.

2. Choosing Minimum Credit Payment

Making payments at a minimum looks very incriminating to your finances. Every month you only need to pay a small amount so that it can be overcome. But realize that the smaller the payment you make, the longer you have to pay it because the total price remains the same. The minimum payment option only keeps you in debt for a long time. So, it's better to pay as much as you can afford, don't be too small and not too big.

3. Likes to Delay Credit Card Payments

Each credit card has interest that you must pay if you violate the payment terms required by the credit card, such as paying past the due date, not paying the bill in full, and not paying in full after maturity. The longer you delay payment, the greater the debt you have to pay. Therefore, do not fall asleep with the amount of money you have before you pay off your debts.

4. Have a Lifestyle Above Ability

Seeing how comfortable it is to have a luxurious lifestyle often makes people willing to go into debt to get it. For this reason, one can become very wasteful and end up spending more than his income. Adjust your lifestyle to your income, do not exceed the amount of money you make. It's better to live a simple life and use more money to save.

5. Dare Not Say No

Social factors have a considerable influence in the difficulty of you being free from debt. When your friend or girlfriend invites you to have fun, but requires a lot of money, often this will make you depressed and difficult to refuse this invitation. Because you do not have enough money and are powerless to refuse, you end up using a credit card so that your debt is even more mountainous. Sometimes, you have to dare to reject invitations that have the potential to trouble your life in the future. If not, be prepared to always live under the pressure of debt.

Change your habits!

Having debt is not a good thing, but not always debt is bad. Sometimes, you do have to be in debt so that financial conditions are maintained and financial arrangements can run smoothly. But remember this, before going into debt think first how much you can afford to pay. Don't go into debt if you're not so sure you can afford it. Your habit of relying on credit cards will be bad for your finances, use a credit card only for really urgent needs. Change your habits by no longer being easily driven into debt and start living according to your financial ability.