According to the latest research, a fair share of the population suffers from debt denial. It seems easy to flat out reject that you owe money to someone, right? Well, the longer you avoid taking the responsibility, the bigger your debt grows. Go through the following write-up now and learn about the warning signs before denial kicks your finances right where it hurts the most.
• Borrowing Money to Pay Debt
This technique will compel you to fall in a deep debt pit quite quickly. If you use one credit card to pay another credit card off, your monetary woes will multiply instead of alleviating. The interest, after all, continues accumulating, and you will always be left with a balance that needs to be taken care of.
There is a definite exception. The experts offering standard debt counseling services said that a low-interest loan to pay high-interest obligations is an amazing way to keep the interest payments under control. For example, use a credit card that allows balance transfer with 0% promotional APR or consolidate the debt through refinance or home equity loan.
• Not Having a Monthly Budget
The best way to get rid of debts is by acquiring a comprehensive picture of your finances. You must be aware of your monthly income and expenditure, and create a budget in accordance with that information. If you decide to wing it, be prepared to drown in debt, and compromise your entire future.
Creating a budget is easy, provided you follow all the necessary steps cautiously starting from chalking your overall earnings, setting financial objectives, and tracking your spending to adjusting some of your habits, planning how you will handle your necessities, and reviewing regularly.
• Unopened Bills Everywhere
Refusing to acknowledge your debt is perhaps the most significant red flag that indicates debt denial. By letting the bills stack one on top of another on the kitchen counter, you are merely trying to put off the inevitable. You have to open those bills and pay them sooner or later, so why not do it right away?
If the money owed is excessive, call the loan providers and see if they can develop a payment plan for you. You will not know until you be brave and ask. If you are scared of looking at your credit card or bank statements, you must seek assistance. The faster you face the reality, the better.
I know millions of people who spent the last penny to purchase a Powerball ticket and not food. The experts offering quality debt counseling services said if you are relying on the stroke of good luck to resolve your issues, you need immediate help. Now, there is, of course, no harm in dreaming of finding expensive jewelry or winning the lottery, but make sure to not count it as your chance of getting out of debt.
• Borrowing Money to Pay Debt
This technique will compel you to fall in a deep debt pit quite quickly. If you use one credit card to pay another credit card off, your monetary woes will multiply instead of alleviating. The interest, after all, continues accumulating, and you will always be left with a balance that needs to be taken care of.
There is a definite exception. The experts offering standard debt counseling services said that a low-interest loan to pay high-interest obligations is an amazing way to keep the interest payments under control. For example, use a credit card that allows balance transfer with 0% promotional APR or consolidate the debt through refinance or home equity loan.
• Not Having a Monthly Budget
The best way to get rid of debts is by acquiring a comprehensive picture of your finances. You must be aware of your monthly income and expenditure, and create a budget in accordance with that information. If you decide to wing it, be prepared to drown in debt, and compromise your entire future.
Creating a budget is easy, provided you follow all the necessary steps cautiously starting from chalking your overall earnings, setting financial objectives, and tracking your spending to adjusting some of your habits, planning how you will handle your necessities, and reviewing regularly.
• Unopened Bills Everywhere
Refusing to acknowledge your debt is perhaps the most significant red flag that indicates debt denial. By letting the bills stack one on top of another on the kitchen counter, you are merely trying to put off the inevitable. You have to open those bills and pay them sooner or later, so why not do it right away?
If the money owed is excessive, call the loan providers and see if they can develop a payment plan for you. You will not know until you be brave and ask. If you are scared of looking at your credit card or bank statements, you must seek assistance. The faster you face the reality, the better.
I know millions of people who spent the last penny to purchase a Powerball ticket and not food. The experts offering quality debt counseling services said if you are relying on the stroke of good luck to resolve your issues, you need immediate help. Now, there is, of course, no harm in dreaming of finding expensive jewelry or winning the lottery, but make sure to not count it as your chance of getting out of debt.