Every month you say that you will take the necessary steps to get out of debt, but the problem seems to only get worse. Debt is something that feeds on itself and digs a deeper and deeper hole every month.
The first step in getting your debt under control is to understand why you cannot get out of debt in the first place. Once you can identify your challenges, then you can address them one at a time.
You Lack Discipline
Ah young grasshopper, you lack the necessary discipline to climb out of debt. You may have heard that before, but what does it really mean? A lack of discipline means that you succumb to the urges to spend money, even when you know that you have no money to spare. Credit becomes your enabler, and the albatross around your neck.
The most common example of a lack of discipline is buying unnecessary items on credit cards. For example, you didn’t really need that video game, but you had to have it. When you put that game on your plastic, you just signed up for more debt that you cannot pay.
You Are Relying On Credit Cards
One of the most common tales of people in debt is they use their credit cards to buy food or put gas in the car because they do not have the cash. In fact, non-profit group Demos released a study revealing that 40 percent of low and moderate income households relied on their cards to pay for everyday, basic needs. What they fail to realize is that they do not have the cash because the monthly minimum payments on their maxed out cards have taken over their lives.
Once you reach a certain point with credit card debt, it is very hard to turn back. When you are using credit cards because all of your extra cash goes to paying your monthly minimum payments, then you are in trouble.
You Have No Budget
Everyone who has ever climbed out of debt has used a monthly budget plan as their guide. If you do not have a monthly budget plan, then you are not going to be able to get out from under your oppressive debt.
There are budget software programs you can buy that will help you walk through the process of setting up a budget. You can also check out websites such as CreditRepairAid.org to learn how to put your own budget together and follow it to a brighter financial future.
You Spend Money You Do Not Need To Spend
Do you buy a new car (or used one) every few years, assuring that you always have a car payment? Did you comparison shop when you got your car insurance? Do you have a land line home phone and a cellular phone? Do you watch movies on a streaming service and still pay for cable movie networks?
It is easy to just add things to our lives and then make them part of the routine. But when you start spending money you don’t need to spend, then you are putting yourself deeper and deeper into debt.
If your debt is controlling you instead of the other way around, then it is time to address the problem. With the right plan of action, you can turn your debt issues around and get your financial life under control.