7 Sure-Fire Ways to Stay in Debt (Or Get Out of It)


Focusing on how not to get out of debt can drum home the unhelpful ways someone who faces a debt mountain fails to get out of financial trouble. This is how they inadvertently increase their burdens. When they recognize what not to do, they’ll find it easier to see how to change for the better.

Borrow more money

When in debt, smart people figure out how to earn more money, plodders work out how to save dimes, and fools borrow even more money; which are you? Borrowing only works if you get a loan on which you pay less interest than you currently do on debt. You can then use the money from the second loan to pay off the first at a lower rate. On other occasions, asking for more funds is crazy.

Keep spending on your credit card

People often don’t stop using credit when they are already in debt. Some manage to pay off the debt on a card and then repeat the same mistake by borrowing on it again too. Does the cap fit? If so, you don’t stand a good chance of becoming solvent.

Don’t negotiate a better payback rate on your credit card

Do you realize you may be able to strike up a deal with your credit provider to pay back less interest? Plenty of people don’t consider doing so a viable option in case they get turned down. However, what have you got to lose? The worst case scenario is that they say no, and nothing has changed. However, if they agree, you may save some money.

Spend any extra money you make

If you make a little extra money unexpectedly, do you celebrate by spending it? Folks who don’t believe they can ever get out of debt have the attitude of ‘spend it while you can.’ People who reduce, and eventually do away with debt, use the money that comes their way to pay off debt as soon as possible and only celebrate when they’ve achieved their goal.

Don’t pay off the right debt first

No doubt, there’s at least one debt on which you pay a high-interest rate you would tackle first if you were shrewd. Not recognizing which obligation to clear as soon as possible, or thinking paying off the debt with the least interest applied is smart, will leave you in debt longer than if you get it right.

Don’t switch all debt to the lowest interest rate card

Have you got several cards, and one of them requires you to pay back less interest than the others? If the answer’s yes, that’s the card on which all debt should be placed. Clearing high-rate debt first can save a lot of money.

Don’t change service providers

If you haven’t changed service providers for electricity, oil, or gas lately, you might be spending money unnecessarily that could go toward paying off debts. Shop around for the best deals, and you might save oodles of cash.

Do any of the headlines above match your behavior? Well, it’s never too late to make amends and change the way you handle debt. Adopt helpful strategies, and you’ll get out of debt faster than if you keep making the same old mistakes.

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