Regular Checking of Debt is Vital

It’s easy for people to be complacent about their situation, more specifically regarding their financial status in life. They may be employed but sometimes, they don’t even know where their money goes because before they find out, they are already out of budget. This is a pretty normal situation but one which can be improved if only to help people lead a stress free life.

When it comes to debt, it’s not right to have a careless attitude. Financial obligations should be taken seriously. Think about it, most people need to pay for their basic needs. But apart from that, there are other expenses that need to be taken into consideration such as utility bills, tuition fees for those who have children, loans and credit card bills. If these bills are not paid at the right time, then your debt will likely accumulate.

Debt has been found to cause a lot of stress to people. Some get a big headache just thinking of ways on how they can settle their financial obligations. Some can’t get enough sleep while the others who are already being hunted by collectors can get develop the jitters. So there’s no escape, although sadly many people try to escape from their debts.

In order to settle your financial troubles, the only way to do it is to face reality. The very first thing you need to do is calculate the total amount of all of your debts from the different types of loans – personal, payday loans, student and vehicle loans, credit card balances and bank fees from bounced checks.

From there, you may then want to calculate how much of your income goes to paying debts. Reports have it that most families allot about 20 percent of their total incomes to paying what they owe. For those paying more than this, they are considered to be in a difficult financial situation. Those being hunted down by collectors and sued by creditors are already in a critical situation which means it’s high time to take action.

Credit cards and loans should be your priorities in settling your debts. The plastic cards accumulate interests and other charges fast the reason why they should be given utmost attention. Loans should never be taken for granted as well.

With lenders now tightening their rules, it’s best to take action sooner than later. A good alternative is to consolidate your loans and go for the longest repayment term so it will not be too hard on you and your family. You shouldn’t worry if it’s going to take you 10 long years to pay off your balance. What’s important is that the monthly amount due is very affordable and it’s going to be a fixed amount for that 10-year period you’ve chosen. At least with this option, you know that you can afford to repay the loan and focus on paying back the more important debts you have accumulated.

The short term unsecured loans such as the payday and cash advance types are also considered to an affordable option. These loans can be availed of during emergency situations by employed people of legal age and with a current bank account.…

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Is Debt Freedom Attainable?

There are some questions in the minds of many people that remain unanswered and one of these pertains to debt. This comes to mind what with Debt Freedom Day already in our midst. One of the questions that continue to bug most of us is, can we really achieve debt freedom in our lifetime?

The answer to this won’t and should not come from other people or even from the financial counselors that we seek when we get into deep financial trouble because it is still us, you and me, who can settle the problem. Yes, debt freedom is very achievable if you commit to taking the right steps towards that goal and if you carry on with it consistently going into the future.

A new research revealed that February 20 marks Debt Freedom for 2020. What this means is that the first 50 days of the year should have been spent by people earning sufficient amount of money to pay the interest on their debts.

If we analyze the situation, in line with Debt Freedom Day, the financial experts are right in their opinion that sadly, people are only able to come up with payments for the interests of their debts involving credit cards and personal loans but not on paying the actual amount which they owe. Reports say that for credit card alone, the debt of people went up by 4 billion dollars in 2019 reaching a total of 54 billion dollars. In fact, the cost of using the plastic has also gone up what with interest increasing to 18.8 percent. This average interest alone is already considered the highest since 2007.

Additionally, debt from personal loans although did not show an increase remained at a high level of 11 billion dollars. This was despite the increase in repayments and restrictions imposed by lenders.

So indeed, it is high time that people focus on repaying their debts because if we continue to accumulate debts going forward, it can cause a lot of stress in our life. It can haunt us most of the time especially when collectors already keep coming back to your home to remind you of your payment.

It may not be easy, though, for some people to pay off their actual debts in just a short time. It can take years to pay off an outstanding balance especially where credit cards are concerned. But what matters is you start acting now before it’s too late. Start saving and spending less on unnecessary items and if you can, pay more than the minimum amount due on your loans and credit card bills. Focus and commitment are important traits people facing huge debts should develop onwards in order to successfully manage their finances.

As financial advisors would say, debt is controllable so don’t let it control you or you will be on the losing end. Be mindful of your financial responsibilities and keep a positive attitude to eventually achieve debt freedom in your life.…

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