7 Reasons Why You Still Buried in Debt

debtDebt is one of many problems currently facing mostly by employees.  There are credit cards, school related expenses such tuition fees, telecom bills, and other form of indebtedness.  Because of these, many debtors run in loan sharks companies (small lending companies that lends credit to individuals) which impose higher interests and shark-like collection scheme.  And many are not capable to pay on time, which lead to more debts.

In this article, we will elaborate why these problems occurred  and let us dissect to be able to know the cause of buried-in-debt.

You Have Complicated Lifestyle

Lifestyle define our lives.  It is not only link in health and wellness, but also in our finances.  No lives in this planet doesn’t need any money to survive.  If you think you have complicated lifestyle such maintaining more than one families (having too many “fun”  in your younger years) then you have to re-think your decisions.

The best thing to do if you are having complicated lifestyle today, re-think and contemplate your past and presents decisions and do essential adjustments in able to make your lifestyle simple.

You Don’t Have Any Investments

Unless if your only investments known are mobile phones, laptops, jewelries, luxury bags, rubber shoes, and your pity self.  These are also a form of investments; investment towards financial disaster!!! If you are one of these people, get up on your bed and shop to your nearest bank and apply for real investments.

The best thing to do is to stop these financial leaks and start to change your mindset.  A mindset should have full-awareness in the difference of good investments and bad investments.

You Don’t Have Proper Saving Plan

Again, unless your Saving Plan is to spend your hard earned money to immediate gratifications such luxuries and wants then no wonder why you are still in debt.  People may define thru their spending habits.  If they are more into immediate gratifications, it reflects they have little discipline in using their resources.

The best thing to do is to change your mindset about money.  Money can define your lifestyle and your future life.

You Don’t Have Any Life Insurance

When I say “Life Insurance” is really about life, not about a demise by someone.  Life insurance today is now a necessity.  Most unbeliever in life insurance, realized they should have one when times they need it most.  Life insurance is also like having life coverage, investments, and hospitalization due to terrible sickness such cancer.

Having life insurance that have investments attached is a very wise decision.  I never seen anyone who bought life insurance policy with investments attached, never felt sorry that they made this decision earlier in their career.  I felt sorry to those who offered a very good product like this, turned down coldly.  I hope you are not one of them.

The best thing to do is to get Variable Link Insurance (life coverage with investments attached) first before having other investments.  Life is full of surprises, you also never know what your life will be several years from now.

You Have Problem in Your Cash Flow

It’s very elementary.  Your cash flow out (anything that take away money from you) is greater than to your cash flow in. (anything that put money in your pocket such salaries, businesses, and commissions).  If you feel there is scarce in your budget, review again your and priorities and expenses.

The best thing to do is to define your current financial condition.  Your capacity to pay.  Be honest to yourself.  Then condition yourself to live in the rule of your budget.  Payout all outstanding loans and debts.  Avoid using credit cards, use cash instead.

You Have Uncontrollable Habit of Impulse Buying

Impulse buying is immediate buying of any wanted items, only made decision thru impulse. That is why it’s called “impulse buying”.  Many lost their budget because of this spending habit.

The best thing to do is to change your spending habit.  Cut all your credit card, just remain atleast one for emergency purpose, to avoid impulse purchases.  Discipline yourself only to use credit card for emergency purposes, like immediate buying for repairs and maintenance, medicines, and hospitalization.

Most of the Time, You Are Ingrate

This is very common among in working classes, they never appreciate whatever they already have.  One of many reason why people still in debt is not being thankful on things they already have, when others dreaming to have at least one.

The best thing to do is to be always thankful on whatever possession you have now.  Avoid complaining and comparing yourself to other people.  Always remember, there are always people who are far more terrible condition than yours.  Be thankful always.

Be always thankful on whatever things and possession you have now.  The secret of having contented and healthier life is always being gratitude.  Complaining and whining can only sip your resources and attracts negative occurrences.

 

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Eleison Cruz

Financial Consultant. Personal Finance and Investment advocate. Author of The Good Asset, a blog that educates people in investments, financial literacy, and life insurance. Visit www.thegoodasset.ph

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