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Changes to Make to Live a Debt Free Life

 

This habit of incurring constant debt has become ingrained in the human lifestyle. We borrow money when we need it, not realising that we might not be able to pay it off. With tantalising ways like taking out a loan and credit cards, it becomes easy to keep sinking into debt. Credit card debt has been estimated to be the greatest contributor to a person who is in debt. People keep swiping the card, buying what they need, but do not always have the means to pay them off. Most people use big percentage of pay check to pay interest on payday loan debt. There is little hope for us to clear off our debts if we do not make changes in our lifestyle right now. Here are some ways you can change the way you spend and get rid of the debts hanging over your head.

Changes to make for a debt free life

Debt Consolidation

The concept of debt consolidation is to take out one big loan to pay off all the smaller pay day loans that have accumulated. The payday loans drain your money as you have to constantly pay interest on all of them. If you take one big loan, pay off the smaller loans then you will have to pay interest on one loan and the amount to be paid in interest decreases by 70%. Payday loan consolidation really helps you save money to start paying the actual loan instead of just interest. Solidgroundfinancial.org is a financial assistant that will help with payday loans assistance, handling your finances to quickly make you debt free. They are experts in handling debt and paying off the loans quickly with the larger amount of money. They will advise you how to manage your finances so you can pay off the larger sum of money as well, thus saving you hundreds of dollars’ worth of interest. Direct all your efforts to saving and paying off the primary sum to be debt free.

Cancel your credit cards

Using credit cards are likely to land you in huge debt and most of your money will go into paying interests. As long as you have credit cards, they will give you the illusion of money when in reality you have very less in your bank. If you do not have a credit card, you will be less likely to be tempted to buy something out of your budget. Surrendering all your credit cards is the first step towards a debt free life. Use a debit card instead which will not work if you have no cash in the bank. When you get the pay check, cash 30% and try to make that money last the whole month. Do not purchase what is beyond your budget, to avoid running into debt. Do not let the bank drain your pay check towards interests for the money you have taken from them through credit card.

Make saving a habit

Just like getting into debt is a habit, you can make saving a habit. Never use more than 30% of your pay check. Buy the things that you can afford with the 30%, the other 70% should be saved in a savings account and allowed to accumulate for times of need. When you have to buy something that costs a lot of money, or pay for new furniture or a new car, this money can be used. When you go to a payday loan assistance Company the first advice they will give you is to start saving as much money as you can. This money could go towards paying off the principal sum of any outstanding loan. If you have a sizeable saving you would not need to loan any money in the first place. If you use your own money then you need not be in debt to anyone. If you see that you do not have enough money, delay the purchase. If it is an emergency take out a loan only for the amount that you fall short of from your savings. It is easy to borrow someone else’s money but that debt will eventually catch up with you.

Manage your finances

Most people land in debt because they are unsure of their finances. They make commitments their finance cannot support and end up having to take credit from someone. A debt consolidation company like solidgroundfinancial can be engaged if you feel over your head with your finances. Apart from helping you pay off remaining debt, they will acquaint you with your finances. Often people are unaware of assets they might have or the kind of spending that can be supported by their financial situation. One of the reasons many people never run into debt is because they know their finances very well. Coming to terms with your financial situation is a crucial step towards changing the way you approach money. It prevents one from making bad decisions and incurring debt.

Do not be materialistic

Most of us tend to buy things we do not even need, just because we seem to have an illusion of money thanks to credit cards and loans. The first step towards changing your debt ridden life is to stop being materialistic. You can survive without a car if your finances are in a dire condition or you can wait a year before splurging on new furniture. When you stop relying on credit sources thinking you can take one payday loan for another payday help you will stop spending beyond your capacity. Capitalism wants you to be in debt so it can squeeze more of your pay check to pay interests, so get a grip on yourself. Whenever you feel the need to buy something, sit with your bills and your bank books. Make a list of all the things that you need to pay for that month (things like food, medicine, house rent are indispensable), then deduct some money that would go towards savings, if you still have money make purchase, else don’t.