Debt is never an easy answer to anything
because sleepless nights and days of confusion and stress to repay an enormous
financial commitment is a high price to pay despite the higher material price
of the transaction. Debt can change anyone including hardened finance veterans
because of these three things.
Day To Day Living
The understanding of "you live only
once" is hip and youthful but for debtors, it also holds the idea of
living paycheck by paycheck monthly -- a bad financial practice. The fear of
having nothing to pay for a financing leaves one to overspend their money
despite a successful budget.
Mismanagement
Debt management could be chaotic and further
confusion could result into higher debts for borrowers. Proper financial
management always includes the interest rates in its equation -- so
prioritising other convenient loan repayments is a bad investment that only
leads in circles.
File Bankruptcy Immediately
Bankruptcy should be a last-resort option.
Filing for personal bankruptcy removes the safeguard of a government-aided debt
aid by six years. Debt consolidation is a better solution. Filing bankruptcy --
and repeating the same errors without fail -- is a common cycle among
borrowers, which means it would be wise to have a financial goal to aid one's
discipline effectively.
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