Are You Making Your Debt Worse?


Debt is an enormous financial burden that people spend most of their adulthood trying to shoulder and escape.

Unfortunately, not everyone is good at managing their debt, and as a result, financial freedom will always be an unattainable dream.

If you’re tired of being broke at the end of every month, you need to take a good look at your lifestyle and determine whether you’re the one keeping yourself in debt.


You Keep Borrowing Money

Loans are a convenient way to make ends meet; payday loans, in particular, are popular with people who are a little short for their rent.

Unfortunately, the constant cycle of borrowing just sinks you deeper into a debt grave. The high-interest rates on payday loans alone will leave you struggling for years.

If you’re determined to get out of debt, you have to stop borrowing money and debt consolidation USA can help you plan a realistic way to pay off the rest of your outstanding loans.

Most of these plans will consist of determining exactly how much you owe, and how much you need to live on.

From there, they will make a repayment plan based on what you can afford; this means you will seriously have to make some serious cuts in your lifestyle.


You Keep Using Your Credit Card

Continuously extending the limit on your credit card instead of paying off the charges will obviously negate any progress you’ve made toward paying off your debt.

If you have a difficult time reigning in your spending habits you need to get rid of your credit cards; Cut them up, freeze them, cancel them, anything to get them out of your life and stop your debt growing.

You also shouldn’t open any new credit cards while you’re trying to get out of debt. Wait until you’ve managed to clear most of it, then open a secured credit card and learn to use it responsibly.

Keep your utilization rate below 10 percent, and pay back what you owe in full every month.


You’re Living Beyond Your Means

You don’t have to live like a pauper, but you shouldn’t keep treating yourself like a prince if you can’t afford it.

One of the easiest ways to start building up your savings while you pay off your debt is to make some cuts in your lifestyle.

Find out ways you can reduce your bills every month, budget your shopping list, and sacrifice a few of the more expensive luxuries that you no longer use (gym memberships and magazines can always save you a lot each month).


You Don’t Prioritize Saving


Even people who have well-paying jobs often find themselves in debt or broke near the end of the month. That’s because they tend to prefer spending money instead of saving it.

Although you might not struggle, you won’t see your bank balance grow if you’re not putting money away.

The second you get paid, put a fraction aside for a savings account so you can watch your money grow.

So are you falling into any of these traps?  I would love to hear your story about how you are dealing with this in the comments below.


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