Debt – the word itself can give a feeling of having butterflies in your stomach. It is one such word that each one of us wants to get rid off. Many of us make various plans and strategies to ensure a debt free life but it is easier said than done. A debt pay off plan depends on various factors such as the amount of debt, nature of debt and the amount of your income. However, it is rightly quoted that, “Nothing is Impossible” and thought of getting rid of debt is no different.
What leads to Debt?
Your behavior and spending patterns are very crucial factors in deciding the amount of debt that you have. It could very well be your emotionally driven behavior and attitude that has an impact on your financial state. Are you an impulse shopper? Do you make purchases just to feel better? Do you try to keep up with the Joneses even if you can’t really afford to? Do you buy what you don’t really need?
Lack of proper financial planning can also lead to accumulation of debt. Budgeting plays a vital role in controlling and maintaining your inflows and outflows. If you have not sat down and created a budget, it is to your advantage to do so. Do your best to stick to it. If you lack of proper budget plan, it will lead to poor financial stability and create more debt. Read More