Are You Losing Control Of The Purse Strings?
Almost every household in the country has a level of debt. Whether this is unsecured, a mortgage or student loans, debt is ever present. This means that we are spending a significant portion of our salaries managing creditors, juggling debts to various companies and overall struggling to make ends meet. We can live as tightly as we like, but if you bury your head in the sand and refuse to see the bigger picture of where your money goes, you could end up losing your grip on those purse strings and spiralling out of control.
The first step to managing a problem is recognizing that there is one in the first place. Debt is not easy, and while the option is there to call a bankruptcy attorney and get the ball rolling to start again, it would be better to fix the problems before you get to that point. So, how do you know you are out of control with your debt?
Payday isn’t fun, it’s a cause for concern. Living from paycheck to paycheck is not easy; it’s stressful and takes a huge toll on your mental health. If you spend time reworking your budget and changing the way you live, you can look forward to payday again.
- You take from Peter to pay Paul. Payday loans and transferring balances just make it harder for you to manage debts. You need to stop the cycle of shuffling debt around and face the payments you have to make.
- You’re focusing on the minimums. Each credit card and debit account has a minimum to pay but the thing is, if you’re only ever paying the minimum, you’re never going to make a significant dent in the debt itself. Work your budget to increase those minimums, even by a dollar at a time to pay it faster.
- Your credit accounts have reached their limits. Spending on credit gives you less purchasing power overall and means you have less spare money at your disposal. Think carefully about anything you put on a credit card and avoid it entirely until your debt situation is sorted.
- Emergency savings are a thing of the past. If you’ve dipped so far into your savings just to pay the regular bills, there’s a problem. Your regular bills should be managed without depleting your savings account money. Speak to creditors about lowering repayments you cannot manage.
- The doorbell is always ringing with debt collectors. The scariest part of the owing money is being chased for it. Don’t avoid the phone calls and letters, and don’t hide when the doorbell rings. Get advice and get the courage to speak to your creditors. They are the people who lay between you and financial freedom.
- Your debt makes you feel embarrassed. It is so common for people to feel like they can’t talk about debt, like they will be judged. But it’s so much better to face it, talk about it and deal with it than run away out of embarrassment.
Dealing with debts head-on isn’t easy, but it is far better to have a handle on your finances than run away from responsibility.