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.