Tackling debt is never an easy job because there are so many different causes to the problem. Whether people feel entitled to the good things in life, want to maintain their standard of living, are waiting for a miracle or simply don’t understand the seriousness of their condition, solutions for most people will be multifaceted and it may take a well-designed debt relief plan to resolve completely. But by acknowledging the problem and understanding the emotions (or people) that affect how and when you spend your money, you will take the first step towards lowering your debt and getting on the right financial path.
Life is Boring (Sometimes)
Many American’s have such active lives that they have difficulty when they’re not involved in some sort of activity or hobby. Whether you spend your time playing sports or video games, going to the theater, gardening, decorating your home or any number of activities, hobbies cost money. But what we call boredom is really a lost opportunity to enjoy quiet, solitary moments to reflect and realign thoughts, dreams and actions. If your activities incur additional debt, it’s time to reassess how you spend your time and either modify how often you participate in your hobbies or look for new ones that cost less.
Indulging Friends or Family
The influence of family can’t be denied, especially when it comes to children. Every parent wants to give their kids more than they had when growing up, and kids quickly learn to tap into a parent’s desire or guilt to get what they want. Grown children and aging parents may also need a helping hand. But the truth is that no matter how hard you try to make your children happy or how much you want to help, uncontrolled debt may mean a future of repossessions, foreclosures and evictions. While it’s important to be supportive of the needs of our families, it’s even more important that you put limits on your spending.
No Advancement Possibilities
It’s not unusual in today’s tough economy to experience a job freeze, layoff, demotion or the necessity of working more than one job. While debt rises, income may be stagnant or fall, and debt may become a necessity to simply survive. This is a tough debt opponent but not unbeatable when you commit to working to advance in your chosen field or go back to school to learn a new trade.
Underestimating the Future
When we make plans for the future and later find out we haven’t met the goals we set in the beginning, it can be discouraging and frustrating. Borrowing can be the same way – taking on debt with the expectation of paying it off in a reasonable amount of time and then ending up over our heads. If we can’t even get tomorrow’s schedule right, just imagine how dangerous taking on debt can be when you are underestimating the future. Set your future expectations low (when it comes to debt) and never fall for ‘buy now, don’t pay anything for a year’ deals. Psychologically it feels like you’re getting something for nothing – BUT YOU’RE NOT!
* Do you have problems with debt? Consider a reputable debt help program…