Many think that paying off debt is a simple process. You take spare funds, and pay it off. Simple. And yet it is not that simple for many, especially those with multiple debts or changeable income. We took a look at mistakes people make when paying off debt.
Mistakes People Make When Paying Off Debt – Not Reaching Out
It might be your debt, and your debt alone. But that does not mean that you need to beat debt problems alone. That is simply not the case. In fact, there is a range of help out there should you wish to use it.
Having a support structure can be a vital “crutch” to help you meet your goals and get through the more difficult periods. Supporters may also offer vital advice that you had not considered before.
Not Moving Debt
Many thousands will just leave debt where it is, assuming that the only way to get rid of it and the interest rates it attracts is by paying it off. Not so. There are a wealth of credit card offers out there. Use them the right way and you can save a lot of money. They do however require a satisfactory credit score, which has prevented me moving money in the past. But if you are stuck with debt with big interest charges, move it if you can. It is worth taking the hit of the initial fee to lose the high interest. Just ensure you pay off the debt before the offer expires, or move the money on again.
Mistakes People Make When Paying Off Debt – Turning A Blind Eye
I am so guilty of this, or certainly have been in the past. Your debt problems will not magically disappear if you ignore them. Quite the opposite in fact, they will just get worse. So confront them head on. No excuses.
Mistakes People Make When Paying Off Debt – No Budgeting, No Planning
Look, if you have debt and cannot pay it off right now, you have to be honest with yourself. For too long in the past, i carried on as normal, as if nothing was wrong, ignoring the huge debt problem i had. See above for more details!
So sit down, and plan for the future. Plan for how you intend to resolve your debt problems. Because you need a plan. Work out what you spend and whether you need to. Work out where you can save money, and how you can better allocate funds. End any treats until the situation is better.
Not Saving
Well, i hear you say – if i have debt, how can i save? Debt must be your priority of course, but it is possible once your debt is under control to save some money. And this money will be a great help should you encounter any unexpected costs in the future. It will prevent you going into further debt to pay for those costs. So save what you can, however little it may be.
Looking Back
Never look back. What is done is done. You may have made many financial mistakes in the past, but there is nothing you can do about them now. You can only learn from them and ensure you do not repeat the mistakes. But do not dwell on them. And reassure yourself that virtually every human on the planet has made financial mistakes at some point in their life.
