See how you block the debt spiral
Nowadays, it is really easy to get into debt.
Nowadays, we live in a world where any purchase can easily be made online, either by computer or by phone.
Unfortunately, often too much shopping causes problems in managing your finances.
As nice as it can be for shopping, in the worst case scenario, it can even lead to a really tough debt.
Everything can start when you choose an installment to pay for your purchases, or you can pay for the purchase you make online.
No one will be deliberately putting themselves in trouble with debt, but nowadays it is easier to get into trouble than ever before.
Often, the debt spiral begins with a stupid thing like envy.
When your friend has a new phone, you also need to get a new phone, you can afford it or not.
Selecting an installment for paying online purchases also allows you to buy the product you would not otherwise be able to afford.
How can I stop getting into debt?
Here are a few simple steps you can take to help prevent the dangers of the debt spiral:
- Make a monthly budget for your own income and expenses.
- Think carefully about each purchase decision.
- Do not select an installment for the products you buy online.
- Do not take a loan or a quick cut to pay for the products you buy online.
- Compare product prices before making a purchase decision.
- The most important thing is certainly this: If you can’t afford a particular purchase, don’t buy it.
Shopping is not the only initiator of debt.
Although a lot of debt threads start out with unnecessary and extraordinary shopping, many other things can lead to it.
For example, at the end of the month when the money is over, it is very easy to take a few hundred euro quick-pick.
A similar vein is also easy to take in the next month until we are soon in a situation where we need to take out a new loan to pay off the old loan.
Unemployment, illness, and gambling are also things that can cause a debt spiral.
Gambling addiction recognition would be easy, but giving it yourself is not always easy.
Unemployment and illness, on the other hand, are things that they may not be able to influence much.
Identify and admit the problem!
Before you can get rid of the debt thread, it must recognize and grant itself.
If you are not prepared to give it to yourself or anyone else, then the problem cannot be corrected.
If you have noticed that your debtor has started to accumulate too much, and you don’t want to pay them out without any problems, it’s time to identify and solve the problem!
To resolve this issue, follow these steps:
- Make a paper statement of your own income per month.
- Make a paper out of the “compulsory” expenses during the month, such as rent, electricity bill, phone bill, etc.…
- Now you can see a little about how much money you will spend on living in a month.
- Then calculate how much you spend per month on your funds.
- Be honest with yourself when you study your expenses, only to identify where you spend too much money.
- Once you identify the issue, you can learn more about it.
- Remember: If you can’t give yourself a problem, it is very difficult to fix it.
Solve the problem!
If you assume that, after a thorough investigation, you find that you are spending too much money on online stores, you will be able to try to fix this.
When you know that shopping online causes problems in your financial management, you can better control it.
Or, if you do too much gambling, lottery, and other gambling, you know it’s the problem you need to reduce.
There is a solution to every problem, but before you develop a solution you need to identify what the problem is.
Get rid of high-interest loans!
In many cases, the debt spiral is that the overdue loans are paid with a new loan.
Often, account credits and Quick Loans are also these loan products that pay old loans.
To break the debt spiral, you need to get rid of all high-interest loans, such as quick loans and account credits.
The easiest way to combine loans is to get a loan from a bank.
You always get a cheaper loan from the bank and you can easily pay off all your old high-interest loans.
Combining loans is always a worthwhile effort, as it offers you quick savings and easier management of your finances.