Have you ever thought why the debt still exists? Why are you carrying the debt since the last year? It is much-losing weight in a wrong way though you are aware but do not agree to accept it. This is what led us to start thinking about some of the possible reasons as to why we as consumer stay in constant debt even in the beginning of the financial year.
We need to fix it, but how. Therefore, we are going to share some reasons why we continue in debt and drop a comment if you agree.
You spend more than you earn
Go and check your monthly salary, which is divided into the number of working days in the month, and see how much money you exactly make on a daily basis. What will astound is the whole heap that you spend each day to buy tickets, coffees, food and the odd magazine or gift. The biggest reason is that we remain in debt as we end up living to work, instead of working to live. Do you want to spend all the money on a single workday when it is gradually taking away all your earnings? You need to do a little math and figure out the daily rate and do a calculation on the daily expenditure you make.
Looking after wants and not that what you already have
Another big reason that says you are still in debts is that you focus on things that you want and not on the things that you have. Stop setting desire over clothes, cars, fast foods or some other easy ways to spend your money. You focus on the clothes you have, the car you own and the food left in the cupboard.
You swipe those credits delaying rational thoughts
Swiping your credit card too much obviously lands you up in huge debts. Another thing is that it disconnects you from the financial reality. Money becomes a playful thing. Therefore, it is essential to connect with your finances and use cash for a while. It will help you to gain a better sense of what you spend. Parting away a $50 note is much harder than swiping those cards. This mentality of rational money saving is the reason why you remain in debt. You must opt for cash whenever you need.
No clue about your expenditure
You know that you have too many bills to pay such as mortgage, phone bill, utility bills, Foxtel bills and more. But in the end, you really do not know how much actually you have to pay. The phone bills may sound pretty less but when you add it to the list of other expenses, it might quickly get out of control. You must have total control over the expenses and will be able to calculate what you pay out in any given month.
We will ask you to resolve your debt by taking quick payday loans and help yourselves to recover from debts. You have to aim high to improve it.
Author Bio: Alex Brain is a finance writer and blogger specializing in personal finance. He has worked in the finance sector since 2008. In addition to his professional experience, he loves to spend time with his pets. Currently, he is associated with www.snug-loans.com.au and trying to help people with valuable financial tips and tricks.