5 Reasons you won’t ever be debt free.
Get the cold hard facts as to why you are still struggling with debt. Fix the 5 main reasons for permanent debt, and you’ll find yourself on the right path for financial freedom!
5 Reasons you won’t ever be debt free:
You don’t know how much you owe
It can be confronting to work out how much you owe. It’s easy to pretend you don’t have a problem if you don’t add it up. The first step toward getting out of debt is admitting you have a problem. You need to sit down and add it up. This is the moment of reckoning. It’s easy to get down on yourself but you’ve made an important first step.
You don’t know where your money goes
If you don’t know where your money goes you can’t control it. The easiest way to work out where it’s going is to print out a couple of months of bank statements and add it up. There are a couple of expense trackers you can get for your phone as well. Be prepared to be surprised. Most people have no idea what the spend on, alcohol, coffee, clothes or take away.
You only pay the minimum
The minimum payment on a credit card is just the amount of money necessary to stop it going up. If that is what you are paying you will be in debt forever. If you can afford $1 extra, make that payment. Once you decide you’re going to be debt free, cut those cards up. Then put as much extra cash above the minimum payment onto the card as possible.
You have no plan
If you don’t have a plan you part of the banks’ plan. Write down that you are going to be debt free, put a down next to it. Write a list of steps you need to take. Then take action
She’ll be right
A “She’ll be right” attitude is great, apart from getting out of debt. If you think it will always work out ok you might not take active steps toward getting out of debt. If you have a lot of debt, she won’t be right, you need to do something.
Of course, there are some situations outside of your control. A majority of our clients were simply not expecting the unexpected and got caught out. In those situations, your attitude to money is unlikely to help.
If you found yourself suddenly redundant and without a job, suffering health issues or just come out of a relationship. You’re more than likely dealing with unexpected debt. Our consultants may be able to provide you with the perfect solution to your financial situation. Consultations are free and confidential. Give us a call.
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