Debt Is a Four Letter Word because it drains you! It drains your money, resources and limits your choices. Everyone knows that debt caries hefty interest rates. Credit card debt, personal loans, car loans or mortgages are debt with various interest rates. What can you do?
Keeping debt in control means you have choices. You do not need a mortgage or a car loan to live reasonably. You do not need to spend more than you earn on things that you cannot afford. If you spent a lot on holiday shopping or just managed to go overboard on shopping in general, stop what you are doing! What should you do? You should get out of debt! Absolutely! How do you get out of debt? Cut your credit cards up? No, but you cannot add to them until you get control of your spending. Your first step is to find out what interest rate is on each card. Pay off the highest first! Take a look at your other expenses, in order to increase the payments on that card. Keep your other cards current. Sounds so simple, but too many people find themselves in debt and have difficulty getting out of it.
Many people who find themselves in debt are surprised as though it just sneaks up on them. It is very important to understand why and how you spend money. If you are the sort of person who goes to the mall every time you are depressed to pick yourself up. It is a problem! Understanding your spending habits is key in getting out of debt. Once you are out of debt, you want to have control of your spending. Although debt is a four letter word, getting out of debt can be an accomplishment.
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