So you've gotten yourself into the black hole that is called debt and you need a way out. Maybe you decided to go shopping with your new visa or lost your job and borrowed money to pay bills, whatever the case is you're thousands of dollars in the hole. You also can't figure out why the company who was so nice to you when you signed the paperwork is calling you at all times of the day trying to get their money back. You're in debt and you can't figure out how to pay your debts off but viola! there is a company willing to give you a title loan or help consolidate your loans but guyer beware. This company is not going to give you anything for free.
A few months ago, I started hearing about We Fix Money, Title Loan Max, and several other companies who promised to give you interest free loans with no credit check but all you needed was a car title. I'm sure the companies are popular because they still air their commercials. But anyway, now they have a new one offering pay day loan consolidation. Are you kidding me? This is the whole we've dug ourselves into.
Let's have an honest moment here, a lot of people want quick fixes. They see their debt as something they don't want to put money into so they ignore it. Ignoring debt can ruin your life. The IRS and creditors will take your stuff and leave you with nothing. I was watching an episode of True Life, where the girl shopped so much that she never paid of her debts and Rent-a-Center took all her stuff away leaving her with a mess. Don't be that person. The only way to get out of debt is to pay it off. There are no real quick fixes. If you want to be out of debt, pay your debts off and pay it consistently. Here are a few tips to help you:
1.)stop digging the hole: it doesn't matter how much debt you have, you'll never get out of it if you're digging the hole deeper. Imagine you're filling a hole but every time you put dirt into it, someone takes the dirt out. You'll never fill then hole and you'd probably be in jail for assaulting them with your shovel. If you want to get out of debt, stop using your cards and getting pay day loans.
2.) live below your means: living beyond your means got you into the situation so live below your means. If you have to downsize, do it. Living below your means gives you a cushion if you lose your job and have to be on unemployment or if you take a pay cut. This also allows you to lessen the chance you'll get into debt.
3.) your debt is a bill not an option: so many people treat their financial obligations as options when they're not. Being financially irresponsible can ruin your entire life and livelihood. It is not fun to have bill collectors calling you at all hours of the day for a bill you choose not to pay. Budget your debt into your finances. If you can, allocate 10% of your monthly income to paying this debt down, once it's paid put the money into savings.
4.) stay debt free: for many people the problem may not be getting debt free, it may be staying that way. If you have truly learned nothing, you'll find yourself in the same position this time next year. Learn that you should only buy stuff you can afford and to live below your means. Actually learn something from this experience.
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