How to Stop the Debt Cycle?
Most individuals are in debt cycle and to stop it there needs to be a change and specifically the change of your mindsets. We are in habit of making our expense list bigger and bigger without even realizing the pros and cons of spending money unconsciously. Plus you need to realize that debt isn’t a financial/money problem alone. The cycle is quite easy to stop if you want it to. The problem is that we are aware of the financial terms like interest, fees etc. but we are unable to understand the difference in the terms of credit and debt we consider them one in the same.
Debt cycle starts with the word play.
If the lender offers their clients owing money to them most of them would say no to it and would run for hills. As a substitute, the term credit is used to trick the minds of individuals to believe that you are not incoming into any kind of employment agreement. Whereas, the term debt free means money owned not owed which would be wanted by everyone. When an individual would obtain credit he/she would begin to work for someone else instead of working only for herself/himself.
You should realize that weather your finances are healthy for you or not and are you able you manage them properly or not. It’s necessary to keep yourself away from idiotic debt management strategies.
So, start you debt free journey and you should keep yourself away from acquiring any kind of debts. As you need to decide what should be on you expense list and what shouldn’t. Look for additions or part time jobs if you are unable to meet your requirements and include you family too. So, they would know the financial conditions you are facing and you should all work for managing your debts in a better and sustainable way.
What is the difference between dreaming and imagining a debt free life?
Imagining is something that directs towards action and creates a readiness for doing something in the present. On the other hand dreaming refers to your thoughts which can be for a short period, a day or hour etc. so, decide that are you imagining or dreaming a debt free life for yourself? Your answer will make a difference and work on your thoughts for getting a debt free life.
How to pave a road to financial freedom?
Most importantly you need to understand that why keeping yourself out of any kind of debts in important for you and if at any point you would forget because of any temptation than your debt free journey will come to an end. To increase the probability of your success than you must keep in mind why it’s important to understand the details.
Develop a habit of writing it would make your mind clear even find a companion for this so you will feel more satisfied. Start with writing the reasons and wants of becoming debt free at all levels and remind yourself these reasons by placing a special corner etc. on which you can stick these reasons of being debt free, it will make you remember and won’t let you distracted.
It is important because many if our expenses are done unconsciously. Allow yourself to remember your financial aims and goals. Whenever you would want to cheat or deviate from your goal you will find strength by seeing these words which you yourself have developed.
How are these tips going work for you?
Most individuals would be expected to read about the payments strategies, interest etc. in this article but the reason that financial advice is not always important for keeping yourself out of debt cycle because every time it’s not the problem of financial literacy. The problem lies in living a life of unconsciousness. People are in debt because they spend without understanding the pros and cons of doing so and they do not keep a track of their money. As well as changing your mindset as discussed in the article in a mandatory issue to tackle that what to do and what not to do with being aware of your circumstances.