5 mistakes that keep you in debt

Whether it’s credit cards, a loan, tuition, you can pay off your debt regardless of the reason for the debt. However, there is no quick fix, debt repayment is the result of disciplined financial behavior and a lot of devotion. On the other hand, even with strong discipline and devotion, it is possible to make mistakes. Here are 5 mistakes to avoid when trying to get out of debt.

If you have not done it yet, start negotiations as soon as possible

Undoubtedly, negotiations should be the first option you think about when you want to get out of debt. Many people think that this solution is not adapted to their situation or they are simply afraid to do it. If your debt comes from your credit card, then negotiations are definitely an option to consider. It is normal to be fearful of entering into negotiations, but it is still your future and your financial independence that is at stake. Do not let a simple fear prevent you from getting out of debt. To negotiate, simply call your credit company and ask them if a lower interest rate could be offered to you? Easy, is not it? Of course, it is possible that the company refuses, but the test is worth it. Here are some tips to keep in mind when calling your credit company.

  • Do your research. Know what your current interest rate is and what would be a reasonable interest rate to ask.
  • Take the time to call. Do not do it when you are about to leave the house. The call may take longer.
  • Make sure to talk to the right person.
  • Be polite, firm and confident.
  • If they refuse the request, ask them when would they be willing to lower the interest rate?

Even if you are not completely comfortable with the negotiations, in the long run, this could be extremely beneficial for you. Even a slight drop in the interest rate will save you a lot of money in fees. Follow our advice during the call and, in the worst case, they will tell you no.

Stop thinking that it is normal to be indebted because everyone is too

Yes, many people are in debt. However, that does not mean that you must be too. The worst mistake to make is to adopt the behavior of a herd: think that having a debt is normal because everyone is in debt. Watching friends and family spending money on clothes, traveling, and other hobbies can be difficult, especially when you know they are in debt, but they just do not care. If the debt weighs heavily on you, then it is time to act. Imagine how you will feel when you are financially free. Debt is not a popular trend, so stop treating it as if it were.

You can not repay your debts without having a plan

The best way to start paying off debts is to have a plan, a budget, or just a list of things to do. The plan is essential to become debt free. In making a plan, you will have a concrete idea of how much money you spend on food, recreation, and transportation. Once you analyze these numbers, you will have a better idea of where to make the cuts. Make a plan and stick to it. Later, you will thank you for being disciplined.

You must change your attitude

If you have ever tried to get out of debt but have failed, it is surely because of your attitude that kept you oppressed debt. You must start anew with a positive projection of your future and your financial situation. By changing your attitude, you will succeed in getting out of debt much more easily. Change starts with the small things in daily life and then, the big changes that will be much easier to implement, Changing your attitude is changing your future.

You get distracted by other priorities

Letting yourself be distracted by other priorities could have a negative impact on your exit plan. Life in itself is a great distraction, but it’s about managing your needs and desires to become debt free. To get out of debt, savings must become the number one priority, in front of shopping, outings with friends or travel. If you are always tempted by your friends who come out constantly, make an attack plan, review your priorities and adhere to your desire to get out of debt.

Nobody is perfect, so do not blame yourself for having debt. Rather, focus your energy on the action plan. Avoid the mistakes above and you should be free financially soon.