Understanding
Why You're In Debt
One of the
problems faced by people who are heavily in debt is that they do not even
understand why they are in debt. You'll hear people blame their financial
plight on low income, or underemployment, or divorce which makes them lose a
huge percentage of the shared property they had as a couple, and many others.
The causes of debt can be very subtle, so masked you'd hardly recognize them.
The first thing you should think about is how you live your life. If your
standards are above what you can afford, you'll live in heavy debt. We live in
a culture that advocates consumerism, and people develop the craving for things
very much. Growth in internet and digital marketing creates an even greater
need for consumer markets, and people easily find themselves wanting things
they do not even need. If you take a look around your apartment, you'll find
ample proof of what I am talking about. There are things you buy which you
never even use, some that you use only because you bought them. Did you
consider the reason of buying those things? It could be the because of the lure
of the newly acquired credit card. And with the credit card, you can treat your
friends out, eat at great restaurants, buy expensive lingerie, and ride
beautiful cars. What causes debt is the innate desire to acquire things.
Separate Your
Needs from Your Wants
There is this cell
phone I have wanted ever since. As a writer, I have always dreamed of a Smartphone
with great applications for writing. I wanted the Kindle Reader the very moment
I learnt it existed, and whenever I saw ads about these devices, I felt a swell
in the pit of my stomach. But I didn't need them. I had something I could use.
I still write with an old Compaq laptop I bought in 2005, it was a used laptop
then. If I bought these devices because I wanted them, I'd be in debt, and I do
not think I would have been able to pay the debt on schedule. If you spend out
of necessity, you'll be able to save a lot of money for the rainy days. The
things you want are those that empty your wallet and make your credit bill very
high. You will start moving towards financial autonomy if you start by living
simple, with little or no wants. You should make the resolve course to cut down
your expenses, and choose a cheaper way of life. Things that are trendy can be
cause for much temptation. You watch ads on TV and you suddenly want to buy
that Cable TV or the DIRECTV because everybody talks about it. These are things
you can buy, but seeing them advertised will make you want to have them
instantly. That is what the marketing strategy is designed for: make you want
the thing so much that you even steal or get a loan for it. Things become even
easier with lenders like www.greatplainslending.com who will offer you instant
loan. You can even apply for the quick cash loan from the comfort of your home and
have the money in your bank account pretty fast. Isn't it really
tempting?
Save For Your
Wants
Never get a
quick cash loans or payday loans just for things you want. If you must get a
loan, make sure it is for an emergency, and make sure you only get what you
need. When you find a lender who is willing to offer you loan, you'll even feel
more tempted to get more. The fact that loans are easy to get even make some
people create needs. As someone who wants to earn financial autonomy, it is
most advisable to spend more for your needs, and to use your debit card for
shopping, not your credit card. The debit card helps you monitor your expenses
more closely; you do not pay interests and fees for the debit card. If you have
a credit card, the temptation to buy things will be stronger. It has a lot of
power, but it is a power that rebounds with devastating consequences for those
who cannot master it. If you start saving for things you want, you'll never run
into any financial difficulty. You should make sure you save a percentage of
your salary for emergency situations, and also have a savings plan for the
future. If you do not do this, you'll certainly be on the way towards
bankruptcy.
Learn the Old
System of Budgeting
The success of
any financial plan depends on the budgeting strategy that you use. Good
budgeting should help you save more and spend less. If you are focused on
success, you'll make sacrifices for it. Think about your short term and long
term financial goals, and start working for them now. If you start saving for
your dream home now, you'll not need a home mortgage to buy it in the few years
ahead. If you live with credit cards, you'll certainly buy your house on a
loan. This doesn't give you the inner freedom of ownership of that house. The
thought that you can lose it will always haunt you. But if you start budgeting
for it, saving a little from your earnings, you'll not need any loan to settle
it. If you budget well, you'll avoid losing money on interests for loans,
administrative fees, and penalties for late payments. Budgeting is all about
taking control of your finances. You may want to hire a financial expert to
help you handle this for you if you are not good in financial management.
Learning to live with little is the secret to achieve great wealth.
If you have
considered the above points about debts and loans, then you can now say whether
you really need to get a loan for that DIRECTV package. Discipline is very
important if you want to be financially autonomous. You'll need to sacrifice
your wants and only spend for your needs. There is no other way of breaking the
vicious cycle of cash advance loans. If you want to free from debt, never
consume things before you earn money to pay for them.
