Wednesday 19th of December 2018

Escape from the Depths of Debt

The reality that American consumers are overwhelmed by debt is inescapable. The buy-now-pay-later allure of credit cards proves too tempting for many consumers, high interest rates kick in, and spending quickly spirals out of control. With such an emphasis on the dire personal financial situation, you rarely hear about the people who actually overcome their financial struggles successfully, but they do exist. In fact, 40% of American credit card holders pay their balances off in full each month. In this post, we’ll discuss how you, too, can escape from the depths of debt.

How It Begins

It’s not difficult to get sucked into an abyss of borrowing. People with low incomes are especially susceptible because those who own homes can consolidate high-interest balances with low-interest home equity loans. People without homes, though, tend to turn to high-interest payday loans for relief, only to find that they compound the problem. However, it is possible to get out of the vicious cycle, and many consumers have done it using a variety of programs, systems, or books.

Select a Program

One of the most effective steps you can take toward becoming debt free is to select your system or program. If you feel you need professional advice and structure, you might enlist the help of a credit counselor. Credit counselors’ services cost little to no money and can help you evaluate your situation to develop a workable payment plan. Some companies are also available to help consumers overcome the cycle. Alternatively, you could try the self-help approach and put yourself on something like a cash-only payment system. Limit your expenses to a certain amount per month, take out only the cash to cover these expenses, and then stop spending when your money runs out.

Five Qualities of Debt-Free People

When looking at the stories of those who have successfully escaped from debt, the program or system they used seems not to matter as much as the level of determination to reach financial freedom. Here are five important traits of the debt-free:

  1. Figure out an exact number of the amount of debt carried.
  2. Don’t use unsecured debt at least until you have no balances.
  3. Plan and keep a record of where every penny you spend goes.
  4. Select a program and focus on it single-mindedly.
  5. Don’t quit your system or program until you’ve achieved your goal.

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