When You Have Debt Issues…

Live within your means. It is a common saying. One that this generation had been less keen to practice. Result? Many people are drowning in debt. They no longer work to live rather they live to work. What’s worse, more people are on the verge of bankruptcy because they were unable to manage their debt well. Did I pinch a nerve there? Don’t worry, you are not alone. Majority, if not all, of the population has a debt somewhere in some kind. It is a part of life. What you should focus on is how to manage your debt and finances so it would not spiral out of control.

* List your FINANCES



How much money are you making in a month? Do you have an extra income? How much do you owe the bank or your friends? You should list everything down. You do not have to be an accountant or a bookkeeper to do this. Knowing your financial obligations and sources of income would make you halt when making unnecessary expenses or attempting to incur another debt.

*Make a BUDGET and STICK on it!

A typical mom usually does a budget. Maybe you had, too! But the problem was, you were unable to consistently follow your budget. What would be the reason? You set up an impossible to achieve budget or you were unable to control your desire to spend. Solutions? Create a realistic budget. Do not forget to include every tiny spending detail. If you cannot control yourself from spending, keep your money away from you!

*NEVER BORROW money from LOAN SHARKS!

When you badly needed money, it is really quite tempting to avail the quick salary loan scheme of some companies. Unfortunately, these loans usually have higher interest rates. The government usually has banks and offices that offer low interest housing or salary loans so it is better to take advantage of them. Sure they are processed longer but nonetheless, it would cost you much less!

*Be MINDFUL of your SPENDING

An impulsive buyer and a credit card is a disastrous pair. If you know in yourself that often buy things out of sudden whim, be reluctant to sign up for a credit card. Take a moment to analyze which products would cost you less. Smart buying is a skill than can be developed by all if practiced most of the time.

You have to take control of your finances and impulses in order to not sink in debt. Borrowing money and spending on credit also have their advantages but it is like a double-edged sword. If you are having a bit of a hard time managing your debts, you should follow the simple tips you have read above. Likewise, follow the golden rule:
Live within your means. 

 

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I am former contributor for Bayanihan News Australia and currently a part-time blogger/writer for different websites. I also teach English to Korean and Chinese students online. But most especially, a proud mom of three. ^_^

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1 thought on “When You Have Debt Issues…”

  1. Being in mindful of your spending is probably one of the most important things in keeping debt down. Aware of how much you have in the bank. What your credit cards are for, etc. Good tips.

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