Debt is mounting, and while enthusiastic personalities are telling you that you can get out of debt fast, it’s not realistic. It’s more realistic to say that you need help and still, getting out of debt will be a long road with a huge reward at the end. Here are four reasons you may not be able to get out of debt on your own and could turn to help.
Hopeful Budgeting
This is a common dilemma for people trying to get out of debt — your budget for restrictions that aren’t realistic. If you budget $35 a week for groceries, you’ll constantly be going back to the store, spending more money on gas while also going over budget on your groceries. You can budget reasonably by spending a month tracking your expenses to get a gauge on where your money goes. Give certain budget areas such as groceries, and gas, a little more wiggle room.
Contracts and Other Obligations
Many adults purchased a term life insurance policy when they were financially stable and now feel that they can’t get out of it. You can sell a life insurance policy with proper help. The Mason Finance website offers resources to policyholders who feel like they’re obligated to keep their insurance. You can check out Harbor Life Settlements for more information on term life insurance.
Other common contracts that you can get out of including cell phone contracts, timeshare obligations, and even dental office contracts! You have so many options to get rid of these additional monthly payments.
Not Knowing the System
Most high school graduates know the rough plot behind a few Shakespeare plays and can name a few historical documents. But what adults need that they don’t teach in schools is to know how interest and credit work. These are hard lessons that adults are learning because no one from an older generation taught them how to manage money and manage debt. That’s right if you’re trying to dig out of debt you have to learn how to reign it in and control it.
Call a nonprofit credit counseling agency they can help you learn more about your options and explain the full scope of your situation. If you need someone to level with you and say, “you can’t afford your life,” this is that resource. They’ll almost always provide you with a solution such as consolidation, debt settlement, or debt management programs. Usually, you have many options for help available and don’t know it.
You’re “Keeping Up”
Keeping up with the Joneses is a saying that’s lost a bit of popularity, but the notion is just as present as ever. No one wants to say no to their friends, turn down a vacation, or choose to stay home. Unfortunately, if you’re using credit cards to pay for drinks on Saturday night and going to the movies on Sunday, you’re only digging the hole deeper. Most people don’t make enough to cover the basic living expenses in their area. That means that almost no one has the money actually to live it up on the town every weekend.
Reach out to your friends next time they want to go out and be honest. Say, “Hey, I’m trying to save money, how about we stay in.” Most people are happy to help their friends actualize their goals, and most people know that they need help in getting out of debt too.
Kim Marks 