Culled from eBanka Money ForumBelow are 6 possible reasons why your debts may not go away contrary to your desires, and some simple suggestions to get them resolved.
1. They're larger than you thought
One critical step needed for getting out of debt is to really ascertain how exposed you are in real numbers. If you don't know how bad it is, then there's high likelihood your approach will not be well suited and all efforts may fail. So, you must really work with pen and paper and list out how much you really owe and to whom! And also state out the normal monthly rentals and interest rates. With accurate knowledge of these, you can then have idea if your strategy is well suited for this scenario or you need to restrategize.
2. You have not changed
Some factors or lifestyles brought you this far in the debt cage. A popular saying is:
Its only a fool who would continue doing the same thing the same way and with same attitude but expect a different result!
If your attitude and lifestyles that threw you into debt are still ongoing, then don't expect differently. Some things need to change so that results or outcomes can also change. In effect, you need to change many things about your life so that positive impacts can be expected in your financial status.
Be more prudent, avoid ostentatious lifestyle and much more other ideas.
3. You're still not earning more
Thing is, everything is getting costly more and more. Inflation has made money worth less. So, if you are still stuck with only one source of income that keeps paying you same thing for a long time, then you're into the debt cage for a long time.
Fact: You need to earn more. And there are many ways to achieve this - alternative streams of income, asking for pay raise, or renegotiating salary, changing job for better, and more. Please tailor these suggestions to your specific circumstance.
4. You still can't tell assets from liabilities
If you still don't know the difference, then you still need come more financial education. At this stage when you need to get out of debt, vital is the knowledge to tell assets from liabilities. Assets will earn you more value while liabilities will cost you more fortune. Now is the critical time to not only know what assets are, but to focus on accumulating them over liabilities.
5. You still don't budget before spending
If by now you still don't plan your spending with tight budgeting, then you are the architect of your own misfortune. Being in debt shows clearly you don't earn enough, thats is you have limited money to cater for your obligations.
Now honestly is not the time to spend mindlessly without proper planning. Every penny you earn now needs to be applied most wisely. You need to plan with a budget how each penny will be used. Failure to do this will lead you to owe more because your little means will be misapplied and your debts will keep growing. PLAN! BUDGET!
6. You developed, or still have, bad habits
Some outrightly financially bad habits may have even contributed to your current debt woes. Or, in a bid to get out of your current situations, you have developed or gotten involved in some financially bad habits that instead of helping have worsened your situation. Now is the time to take caution. Here are a few: gambling, drunkenness, drugs, more borrowings and very risky investments. :thumbdown:
All these will most likely worsen the situation. Now is the time to clear your head and know what you are doing.
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