You ask yourself the same questions at the end of almost every month. Why don’t I have enough money? Why is it I can’t pay my bills every month and have a little left over to spare?
The answer is likely that you are running on the debt treadmill. When you are on the debt treadmill you are spending more than you earn earn each month. You don’t have enough money to pay off your debt so you are making only minimum debt repayments. You are barely making payments towards your principal, if at all. You may even be running on empty at the end of the month and are borrowing more, ensuring that you get deeper in debt and increase the speed of the treadmill with each pay cycle.
When you are making only the minimum payments on your debt you are wasting a lot of your income on interest. Paying only the minimum payment means that you will spend forever paying for yesterday’s goods. That leaves you and your family frustrated that you are unable to pay for today’s expenses and you turn to your credit cards to fill in the gap. If this is you then you are using credit to support a lifestyle that you will not be able to maintain.
Jump Off The Treadmill And Get Out Of Debt
The solution is to reduce your debt so you can lower your interest costs and leave more of your paycheque for your current needs.
How did you get on the treadmill in the first place? Right now you may be feeling resigned to your heavy debt load believing that you have no control over your debt and your finances. Ignoring your debt or denying that you have a debt problem that needs addressing will not help. One of the first steps to meaningful change for any situation is to review how you got where you are now. Try to figure out how you got into debt in the first place. Was your income reduced due to a job loss or are your expenses too high?
Are you ready to make a change? Now that you know you need to deal with your debt and have some idea about what is causing the problem, you need to ask yourself what you need to do to reduce your debt. Do you have the knowledge to develop a plan to pay off your debt on your own? Research your debt relief options. Identify any barriers to getting out of debt you may have.
Take action. If you are only making minimum payments on your credit card or other unsecured debt, staying on that path will only keep you on the debt treadmill until you crash. Even small changes in your spending patterns are a great first start.
Get Help. Are collection agencies harassing you? Are you being threatened with a wage garnishment? Do you need a debt assessment? Each of these situations may indicate that you need the help from a professional such as a trustee in bankruptcy. If you are unable to get out of debt on your own, don’t be ashamed to seek professional help from a reputable, experienced debt advisor.
Find a debt repayment solution that works for you and your financial situation and begin aggressively paying off your debt today.