5 Easiest Ways to Get Yourself Into Debt Fast
Many people are deep in debt because they keenly follow one or more of the following traits. If you are currently debt free, congratulations. However, if you are amongst 90% individuals who constantly struggle with minimum payments, you may find some help in this article.
#1 Way to Debt - Impulse Purchase
The first way to debt runs in our vein. By not aware of your purchase limits, you may purchase more than what they need. “Nice to have” items are creeping into the baskets before checkout counters. For instance, you might want some cooking oil before entering the store, but ending up 2 or 3 loads of things you had not intended. Typically, those are the items you have to get rid of.
#2 Way to Debt - Bad Habits Do you smoke or drink? Do you realize how much you’ve been spending on these items? It kills your financial life. Just imagine what you could do with the money saved for not smoking it or the “dirty water” throwing up in the toilet?
What would you feel, if you give the money to your favorite charity or to your parents? That does not sound like you? Okay, what about buying a new laptop for your own self?
#3 Way to Debt - Risk Numbness Most of the times, people are not risk-alert. Accidents do happen. We should always be prepared towards unforeseeable events. Be cautious with your health, your living environment, or anything that might prose danger to you personal and/ or financially. One of the ways to mitigate the risk is through insurance. It happens to anybody, including myself.
#4 Way to Debt - Your Weakness Link Everyone has some soft spots when it comes forking out his or her hard earned cash. For instance, I would easily pull out my credit cards on information products which claim to improve my productivity. What about you? What are the magic words which pull your credit cards out of your pocket?
#5 Way to Debt - Personal Guarantee This one is mostly overlooked but crucial way to get into debt. I save it to the last as I dearly want you to memorize it this rule of thumb. Never do a personal guarantee unless you really want to get into debt fast with no return.
Can you always control your life all the time? If the answer is “no”, why should you guarantee the financial life of some other person? The past does not equal to the future. No one can guarantee the future, neither should you. Even a person has maintained an excellent credit, you should not get yourself signed as a financial backup, should he or she goes default on her debt.
If you want to offer your best help, set an amount that you are willing to give to your friend/ family member with no intention of having that person to return the money. Roy Chan Enjoy your debt free living today!
About the Author
Roy Chan is an Accountant and a personal financial coach.
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