This archive report was first published on 19 September 2019.
Why Getting Out of Debt Can Be So Hard ¶
Are you tired of living with debt? You're not alone. Many people struggle to pay off their debts, and it's not just because they don't have enough money. According to Beverly Harzog, author of 'The Debt Escape Plan,' people in debt often make mistakes that keep them stuck in debt.
Published on September 19, 2019, The Standard reported on common mistakes that can keep you in debt and how to avoid them.
1. Not Changing Spending Habits
One of the most important steps in paying off debt is to adjust your spending habits. However, humans are creatures of habit, and changing your spending habits can be difficult. To avoid this, take a close look at what you spend your money on and cut out anything you can do without. Instead of cutting out all your treats in one fell swoop, cut them out gradually over a specified period.
2. Paying Off Multiple Debts at Once
While it's tempting to clear all your debts at once, this strategy might not work. Paying out small amounts to different sources of debt can wear you out pretty fast. Instead, try the snowball method of paying off debt, where you start by addressing the smallest debts first.
3. Only Paying the Minimum
While paying off as little as possible might seem like good advice, it's a strategy that's doomed to fail. You're likely to lose steam because it will take you longer to clear your debts. Instead, always pay more than the minimum payment required to get your debt paid off quicker.
4. Trying to Borrow Your Way Out
Debt consolidation might seem like a good idea, but it can actually mean paying more in interest charges in the long term. Before taking a loan to consolidate your debt, do some calculations to see if it's worth it.
5. Not Asking for Help
Not everyone is financially savvy, and if you're deep in debt, it's okay to ask for help. Consulting a financial advisor can be your best course of action. They will help you identify the root of your money problems and develop a workable plan to address the situation.
