The 2 (Real) Reasons Why You'll ALWAYS Be In Debt

By: One Advice
Are you in debt? Have you been making payments to your credit cards but you are still confused about why your debt is not shrinking?

Perhaps you have not even missed any payments to your creditors but seem to be stuck in a cycle of debt that you cannot escape from.

If you find yourself in the above situations then you need to read on. This article gives you the answers that you have been waiting for - Here are the Two (Real) Reasons Why You'll ALWAYS Be In Debt**:

1: How can I be in debt? Sure I still use my credit cards but I always make sure that I make over the minimum payment.

Even if you are paying over the odds when it comes to your minimum payments, as long as you continue to use your credit cards, the longer you continue to increase your debt!

If you are realistic with yourself and worked out exactly what you spent on your card, the interest and charges added and compare this figure to what you pay, the difference might not be as different as you thought.

I don't want to always be in debt - Help! - The only way to get yourself out of debt is to stop spending on credit cards (and don't forget to put away the store cards and overdraft too!) Some may find it easy to no longer spend on their credit cards but you may also find that it is difficult. Try and get a realistic budget in placer and stick to it, any left over money should be used to pay off your debts so you become debt free in a short time.


2: How can I be in debt? I make payments every month, even if they are only the minimum payment needed.

This is the ONE big reason why you will always be in debt. If you are looking to reduce the amount that you owe to your creditors then making just the minimum payment is one big no-no.

This is the reason why: The average smallest payment you can make is about 5%, yet on the whole your credit card company will be charging you an average interest rate of over 18%, (even more if you have a bad credit rating or you are paying off store card debt). Therefore your debt repayments are barely covering the monthly charges which are being added.

I don't want to always be in debt - Help! - The straightforward answer is to shell out more than the requested minimum payment and to stop using your credit cards altogether (see the point above)). At first you may find it a real struggle to afford more than the minimum payment so, again, getting a budget in place is the only way you can get your finances under control.

** You don't have to worry about ALWAYS being in debt. Not if you follow the above tips and learn how to get your head around efficient money management. Debt is no longer a big taboo that can't be spoken about. There are financial solutions out there which are designed to get your debt management in check. Never be afraid to seek debt advice - the sooner you do, the sooner you'll be debt free!



About The Author:
Stuck in a debt trap? Can't see you the black because you are always in the red? See how you can make your minimum payments more affordable with free debt management help from One Advice. We offer a number of leading financial solutions, including debt management, IVAs and bankruptcy.