Millions of people are in debt, it’s been true since the concept was invented and will be for the foreseeable future. The ways to get into debt are as plentiful as there are people who are in the situation. It can feel hopeless sometimes but you can get through it like so many people have before you.
Whether you bought a car you couldn’t afford, lost a job that paid more money than you make now or have student loans hanging over your head if you are serious about ridding yourself of the debt there is a way. In fact, there are a few ways, but the wrong ones can put you in worse shape that you were in before. Too many people make debt mistakes but if you continue reading you will be able to avoid them.
Some people are afraid to call the credit card company, or embarrassed to ask for their help. Others just don’t realize it is a possibility. Whatever the reason a surprising number of people lose out on a significant savings just by making the debt mistake of not calling their credit card company and asking for a lower interest rate.
If the debt is medical they may be willing to negotiate for a lower amount if you can pay a portion of the bill in cash immediately. Figure out how much of the bill you can afford to pay right now and have the cash ready. You may be surprised at how often they will say yes.
If you are legitimately having a problem making the minimum payments ask for help. There are all sorts of programs out there to assist but you’ll never know if you don’t inquire about them. For example payments on federal student loans can be lowered dramatically thanks to the Income- Based Repayment plan.
It’s No Big Deal, Everyone Is Doing It
When everyone else is spending like there’s no tomorrow it’s easy to get caught up in the fun. Swiping the card and feeling that rush of having bags of new purchases or buying lunch for the gang is a temporary high and one you have to learn to let go of it you don’t want to spend the rest of your life under a mountain of debt. The first rule of debt mistakes is not to repeat them.
Thinking they can pay their bills off by winging it
You can’t. If you understood your financial situation well enough to control it naturally you wouldn’t be in this situation. Make a personalized plan that not only works toward removing your debt and avoids future debt mistakes but also helps to build your wealth. Forcing yourself to pay attention to the amount of money you need to pay off those spur of the moment purchases will help you avoid making them the next time.
Old Attitudes = Old Debt Mistakes Repeated
Change doesn’t happen without a conscious effort and it isn’t easy. Some people never get into debt because it is natural for them to be conservative with their income. Others of us do not have that natural instinct and for us changing how we view and spend our money is an essential but monumentally difficult task. Try to make it fun to change your attitude and at the very least consciously decide how to put your new attitude into practice in your daily life. Eventually these practices will become second nature when you stick to them.
Not making fixing debt mistakes a priority
Getting out of debt is a serious business. If you wanted to become a concert pianist you would not also take up boxing. First you’d need to concentrate all of your efforts on the piano and second boxing would damage your hands to make playing more difficult.
Think of debt payment the same way. You need to put 100 percent of your efforts into paying down the debt and any extraneous purchases, no matter how fun, are just setting you back from your goal. Set up a budget and remember to make room in it for things that are important to you, but keep removal of debt as the most important focus.
Try to consider the money you are spending as money you’ll be able to save once the bills are paid. You may begin to realize just how wealthy you could be if you weren’t treating your credit card as if it didn’t come with a consequence.
Freedom from debt is one of the greatest feelings in the world. If you can get there by changing your attitude it is liberating to know you will never again be in the position of feeling under the pressure of credit card bills and debt mistakes. Using the guidelines above you should learn to build your wealth and never fall into the debt trap again.