Returning to familiar territory after a period of absence can bring back a flood of memories. Some are good, others might be bad but these mental pictures almost always generate a new perspective to the whole situation.
For many that were successful in getting out of debt, the struggles and the stress of paying high interests month after month will undoubtedly keep them from dipping back into the red. But for those of us who have trouble ignoring the temptation of easy credit, what advice do you have to give?
If you can do it all over again, how will you keep yourself from digging? Do you have any stories to share?
I’m relieved to say that I don’t have any personal ones, but while we are at it, here are a few points to think about if you are already at the verge of diving into the sea of debt.
- Is It Really Worth the Trouble – Most of us get into debt because we forget that we have to pay back the money we borrow. Credit card companies are awesome at helping hide the inevitable. Grace period, minimum payments and a lack of total interests paid are just some of the tactics they use. Before you make the purchase, think about whether it’s really worth paying interests for. Are you getting a return for your money? Or is this purchase just another emotional bandage?
- Think of Your Family – Do you really want to tell your family that you bought ANOTHER new phone? AND with borrowed money? Accountability can work wonders.
- Past Experience – Hopefully not many people fall into this category, but perhaps horrifying nightmares about past debt are the only way to keep you from overspending. When you need to borrow, seriously think about what you went through in the past. Most of the time, you probably realize that it’s not worth the stress.
- Don’t Go Too Deep Even If You Dive – Fortunately, I’m currently debt free, but I will need to borrow soon. I’m not joking, but don’t worry because I haven’t gone mad. I just mean that I will be getting a mortgage when I buy my first house. You may think that’s called good debt, but like I mentioned before, debt is debt is debt. When you owe money, it doesn’t matter why because you need to pay back principal plus interests. If I over borrowed for the house, it is just as bad as over borrowing for anything else. Be responsible with the loan amount, or be ready for the consequences.
- Hearing Other Stories – Maybe. Just maybe, some of you will stay out of debt just by listening to other people’s frustration when they were in debt. If you have any stories about past experiences or any tips on how you stayed out of debt, please help each other out by sharing. If you do, more than one innocent lives could be saved.
Is your student loan putting a burden on your finances? Did you know chances are good that you are paying too much? Check out Credible and take a look at the current student loan rates. You can probably refinance through them here and get a better rate, lowering your money payment and improving your cash flow. It's quick and easy to give it a shot. You may be surprised by the results. Click here to get started.