Unfortunately, debt has become part and parcel of our culture. Every year families in the US are taking on more and more debt. And this increased debt is leading them into financial hardship.
The annoying fact has driven the increase in consumer debt over the last twenty years or so that average wages haven’t gone up. Whereas in the past, people could expect to get paid more in real terms every year, the same is not true today. The world economic system is currently set up in a way that favors the very wealthiest. It’s a system that leaves Mr. Average no better off than he was in the past.
This had led to frustration. People see how the substantial productivity gains we’ve seen since 1970 haven’t gone to the regular working man and woman. They’ve gone to CEOs and execs. And that has led governments to try to appease the people by making credit cheaper. We’ve seen loans for holidays, consumer electronics and even parties. We’ve all been encouraged to spend today and borrow from the future.
Now the future has come knocking and wants to be paid back. More and more people are filing for bankruptcy through sites lie http://www.ny-bankruptcy.com/services/bankruptcy-solutions/bankruptcy-chapter-7/. And the problem is only going to get worse.
So what can we do about debt? Is there a way out? Here are some quick tips to get you started.
- Find Out What You Owe
Many people can’t face even looking at their debts. The numbers are too big and too depressing to contemplate. But look we must.
Finding out what you owe will give you a sense of whether the money can be paid off and whether you can live debt free.
Suppose you owe around $3,000 including interest and want to pay it all back in the space of a year. You’ll need to find $250 a month to pay it off. That’s a figure you should bear in mind.
- Cut Your Expenses
If you’re trying to pay off debt, don’t cordon off any some of your outgoings. There’s money to be saved on all of them so keep an open mind.
Look carefully at your household bills. Could you use moneysupermarket.com to find a better deal?
Then take a long hard look at your bank statement. How much is that morning coffee habit costing you each month? Could you save money by walking to work rather than taking the car?
- Pay Off High-Rate Loans First
Not all of your loans will have the same interest attached. Some will be pleasantly inexpensive, like your car loan. Others will just about finish you off if they’re left unchecked.
Find out which loans are costing you the most money each month and pay them down first. Once they’re out of the way, you’ll have more money left over to pay off the remaining loans.
Just remember that paying off debt involves a little short term pain. But once it’s over you’re freed from all that worry and anxiety.