Debt can easily become a suffocating source of discomfort for many borrowers. It also makes budgeting and planning a real nightmare. There are a few reasons why debt seems to last forever, although all of them are curable.
Lack of Budget and No Handles on Spending
Most people do not like to sit down and budget their income against their bills in order to understand their financial situation. This is a key part of getting out of debt fast. Accounting for every dirham earned and where it is spent will help you understand what is draining all of your money and where you can save as well. In the past, tracking expenses and budgeting was a headache; but a number of free online softwares and websites can help you get started.
Shopping is a Past Time
For those of you who like to spend your down time at the mall or online looking for things to buy, this is a big reason why you are unable to get yourself out of debt. More than likely, you are not paying cash for the items and are using a credit card instead. You should lay off the shopping and use the money you would have spent on a new gadget or accessory to pay off your credit card balance or car loan.
Being Around the Wrong People
Some people just like to show off and always have the “one up” mentality. Meaning, whatever you do, they want to do bigger or better. This can be contagious and turn into a very big problem if not controlled. Therefore, it is important to surround yourself with those who do not have this quality so that you are not constantly in a position where you feel pressure for not having a top of the line car or handbag.
One reason that you could be in debt is because simply put, you keep yourself there. Trying to live above your means such as renting a 2-bedroom apartment when you could get by with a studio apartment or buying a Toyota instead of an Audi could save you a lot of money. Focus your efforts on working to get a mortgage instead of a personal loan or car loan. Everyone has character flaws. One of the biggest is self-indulgence, in this case buying unnecessary things and putting yourself deeper in debt.
At the end of the day, we all need to understand that it is very important to save money and keep ourselves debt free. Depending on where you are in life, there are things you need to start saving for (marriage, college fund, retirement, etc.) and being in debt really takes a toll on properly saving for each one of those items. Take a look at your financial situation today and see where you can begin saving to ultimately pull yourself out of debt and on to a better road for the future.