Being in debt is scary. And, not having the cash you need to pay your bills can seriously suck. That’s why we go into debt, isn’t it? That’s why we spend money that we don’t have. And, it’s ultimately the reason why people do drastic things like selling plasma and taking out payday loans. Big mistake.
Once you’ve gone down that road, it’s easy to continue making the minimum payments and ignore the monumental interest rates and APR’s that most debt collectors will charge. It’s not fun to think about that kind of stuff and as long as you have enough income to cover your monthly payment. But, at a certain point, the bubble is going to burst and you’ll eventually be face-to-face with all of the money you owe.
It seems like it’s almost human nature to go into debt: whether it’s student loan debt, credit card debt or a mortgage. Spending money on high consumption items like vacations, electronics, and entertainment will usually hamper your finances in some way, shape, or form.
But, it’s not reasonable to ask people to stay in every night and eat Ramen noodles for dinner. Instead, it’s all about finding the balance between saving and spending.
Taking the Leap to Get Out of Debt
If you’re currently in debt, you’re not alone. Deciding that you’ve had enough is the first step. You have to be motivated and take a serious look at all of the reason that it makes sense. Do you want to continue paying payments for the rest of your life? Or, would you rather start saving for your own benefit…and your own future?
Once you’ve made the decision to leave debt in your past, create a plan to chip away at your debt. You’ll probably have to make some sacrifices along the way but a smart budget can help you get there. Trust me, there’s no better feeling than paying off the last of your debts, once and for all.
Alternatives to High Interest Debt
Many people get stuck in the debt cycle and end up turning to payday loans or short term high APR loans. These are some of the most expensive loans in the industry and if you’re forced to borrow money you should consider the alternatives first.
If you’ve built up a substantial emergency fund, then you can always borrow from your emergency fund to pay off short-term needs and then slowly start paying yourself back. Additionally, there are certain organizations like non-profits and government-owned options that provide much better alternatives and interest rates for short term loans.
Ultimately, it’s up to you to make responsible decisions once you decide to get out of debt. The hardest part might be deciding that you want to get out of debt and taking that initial leap though. From there, it’s all about discipline and staying on course until you’re free from debt.
Why did you decide to take the leap to get out of debt? Are you glad you did?