To what do we owe? Debt is generally described as a solution to financial problems. Debt will indeed be a solution when we can manage them properly but it can be a problem when not managed properly. Sometimes prolonged debt problems can be arising out of your control. Then, how can we fix the debt problem?
Usually financial difficulties did not come suddenly, but it happened due to accumulation of various the financial problems that can not be solved wisely, following are the signs of financial problems that might help you identify these problems early :
- You consolidate your debt with new loans with higher interest.
- You pay minimum all of the bills that come every month, sometimes even neglected.
- You work extra, not because you love to work 16 hours a day, but because of needs that must be met.
- When the ratio of debt to your income above 20%
- Do not run away, the first step you should do is to admit that the debt you have is a serious financial problem. You should not run away from the person who give you loan, the more you avoid or run away from them, the more problem you will get. Face it, tell all your financial problem and offer the solutions which is good for you and the person who give you loan.
- Try to change one thing in your habits, when a credit card that causes you to lapse into endless debt, stop using it, try to stop yourself and shop with cash.
- Do not make our minds stuck with the debt problems but start thinking about the opportunities to earn additional income without owe. When there is an opportunity to obtain additional income without owe, take action immediately, not matter how small it was. Sometimes God works in mysterious ways, the things that seem small before sometimes become large in the future. Do not let your day pass by without action.
- Make a budget records, once you've started to stop to use your plastic card and began paying the remaining debt, so make a budget that include records of this and stay on budget. In a situations like this sometimes very difficult to be able to control your spending moreover if you should reduce them. So, keep your motivation at the beginning to be free from debt problems.
- Change your habits in terms of financial. Comprehensive financial planning is a partial solution, without changing your habit in terms of finance, will not be much to changes your financial position.