While our finances will always be impacted by external events such as the loss of a job or an unexpected expense, these incidents are not the root cause of debt. You can find yourself in over your head with massive credit debts no matter how much money you are able to earn.
Let’s look at some ways debt is more about behavior than money.
The Future is Not a Fantasy
The future is not a distant daydream; it is tomorrow, and every day that follows. You must plan for your financial future if you are to have success overcoming debt. If you stick your head in the sand and don’t look ahead, you will be the only person who is surprised when your funds fall short.
You must take an active role in your finances, and that involves being aware of what you spend and what you bring in. Create a budget and stick to it. Learn to track your spending to see where your money is going on a weekly basis.
Instant Gratification is Not Part of the Plan
Anything that is full price now will be on sale later. Once you have a plan to overcome your debt, you must resist urges to always have the next new thing, whether that is a new smartphone or the latest gaming console. Being in debt doesn’t mean you can’t have those things, but to avoid further credit debt, you will need to wait until the price falls to a reasonable level.
Even then, the item will need to be carefully budgeted and accounted for. Knowing that it will take 25 extra work hours to buy something you want will change the way you approach purchases.
New Credit is Not in the Budget
If you are struggling to get out of credit debt, you cannot afford to take on new credit debt. You must overcome the urge to use credit cards. Your plan to change your financial future comes first, and new credit shouldn’t be a part of it.
Changing which company you owe money will not get you out of debt. It will only change the name you make out the monthly check to.
Being Late is Not an Option
In order to get out of credit card debt, you must pay your bills on time. This means being on time, every time. Once you start to fall behind the problems can quickly compound until your entire budget and recovery plan is thrown off track. Making an achievable budget and sticking to it will enable you to have the funds to pay your bills on time.
You Are Not on Your Own
When you are facing financial challenges, it can sometimes seem as if you have to do everything alone. While a large part of personal finance comes down to how responsible you can learn to be with your money, that doesn’t mean you have to do it all by yourself.
Our certified credit counselors at CreditGUARD are ready to help you, so call today and speak with a credit professional to see how our services may be right for you!