At the start of this year, you probably vowed to get your finances in order, and your debts cleared. Months down the line, where do you now stand? We are discussing a few reasons why your debt situation isn’t going away and how you can help yourself.
1. You are still using your credit card
You probably told yourself you were going to cut this plastic money trap up when you had finally cleared the balance. And yet here it is, still sitting in your purse. Why? It may be a fallback in case you ‘need it,’ or you may be happy to continue squandering your money away with your shopping addiction. Either way, stop it immediately. You will never get out of debt as long as you have that piece of plastic with you. You should either:
- swap it for a credit card that is easier to pay off, consolidating your debt with something from CreditKarma
- call your card provider and ask them to cancel it. If opting for the first option, follow the second option when your credit card debt is clear.
2. You aren’t budgeting properly
Quite simply, you do need to sort out a budget plan, working out exactly what you are spending compared to the money you have coming in. Many of us get in debt because we try and live above our means, but a budget plan will help you see exactly what money you have leftover after your monthly expenses, and this can be used to paying off your debt. A budget will also show you where you are spending the bulk of your money, so you should look for ways to cut some of these costs, such as finding ways to reduce your monthly bills. There are loads of budgeting apps available to download for your computer or smartphone, so make use of what is available to bring your finances to order.
3. You are trying to keep up with the neighbors
It’s a little like the peer pressure you probably experienced at school. Your friends had something nice, so you felt as if you needed to have the same to fit in. It was nonsense then and it’s nonsense now. Okay, so you might feel jealous when you see your neighbors going away on holiday again or have pangs of envy when they regale you with the latest purchase they have bought for their garden. But you have to suck it up, smile, and pretend to be glad for them. You see, it’s better to be out of debt than continue to struggle because you’re trying to put on a false pretense to your neighbors, so, if you have to, tell them where to stick their new garden gnome if they rub it in your face, and focus on getting your money situation rather than clamoring after theirs.
Final Thoughts on Debt Situations
If any of the above relate to you, do the right thing and follow the advice we gave you. You should also seek professional help from a debt charity if you are struggling, as they will give you qualified advice to help you escape your debt situation. Take care, and thanks for reading.