March 4, 2024

The Catholic Transcript

Complete News World

Escape the stress of debt sooner rather than later

Accumulating large sums of debt can happen easier than you think. Because of how easy it can be to obtain credit these days, it can be all too simple to get yourself into a debt situation that you find difficult to escape from. Indeed, many people find they are constantly in some level of debt as they repeat the cycle of borrow > spend > repay > borrow, which for some people who are not effectively financially literate, can mean the accumulation of a large sum of debt that weighs heavy on your shoulders. A horrifying number of adults are comfortable with perpetually living inside of their credit card debt without viewing this as a potential problem.

The problem with debt (one of many) is that it can cause a hefty stress on your life. It can affect family life, and has even been shown to have a huge impact on blood pressure and quality of sleep. Many people will recall laying awake at night struggling to sleep because of the thought and worry of the debt.

However, you can get yourself out of it and it doesn’t have to be like that forever. There are many stories on the web, like this one, which recall how people go from bankruptcy and large sums of debt to being back in the black, so do not fret – it is possible.

Wonga, a credit company in South Africa, advise that anyone considering a credit application think very carefully before applying for it. They recommend you ask yourself three key questions before making any purchase,

  1. What’s it for?
  2. Can you afford it?
  3. What will it cost you?
See also  The Liverpool CEO attacked the French government again after the chaos

So, if you’ve seen a luxurious holiday advertised that you really want, perhaps you should take a step back before impulse buying. Think how much you need that holiday – if you need a break, why not go somewhere closer to home that is cheaper? What is the cost of that holiday compared to the amount of money you have? If you can draw on savings, is that wise or do you need the savings for something else? And finally, ask yourself what the holiday will cost to you in the long run.

If you are taking out a loan from a reputable company, will the interest rates make the cost of the overall holiday much higher? After considering these questions, you might be in a better position to choose how to spend the money. While a lot of these questions sound like common sense this is not always the case. Practice embodying these questions to less outlandish impulse buys too such as takeaways or a new phone.

Many people who are struggling with debt need advice and information about consolidating their debts. If creditors are getting on your back, you can take legal action to stop them from contacting you. There is also some legal help to reduce your debt in some circumstances, so it is always worth looking into your options carefully. Never be afraid to ask for help – there are many people in the same situation as you. The more you procrastinate, the worse the debt can become. So keep calm and take structured, informed action.

See also  Biden: The United States is to 'respond decisively' to the Russian invasion of Ukraine