People tend to act on impulse before thinking, or in economic terms, they buy now and pay later. Because credit cards, loans, and mortgages are so easy to use, they change the nature of deferred payment. In every case, economic theory is based on the idea that you can pay the principal and interest on a debt without having to change the way you make money now.
But life shows us that theory and practise are not the same thing. Things are always changing for us. For example, your ability to pay your debt can change in an instant if you lose your job, get hurt, or get sick and can't work.
Other human traits that lead to uncontrollable debt include not knowing how to budget or not sticking to a budget, emotional binge spending that goes up and down like a roller coaster, and the need to buy special deals, big discounts, or new things like tech toys, clothes, games, etc., regardless of the ability to pay.
To get out of debt quickly, you must accept that things will change, whether you want them to or not. You should be able to change how much you spend based on your situation. The easier it is to manage and eventually get rid of your debt, the sooner you can respond to change and plan for adjustments.
One way to make short-term changes is to pay off your debts one by one, in a timely and organised way. If you tell your creditors quickly, it's easier to work out changes to your payments, which could lead to lower rates, no fees or late fees, etc., when possible.
Another popular way to get back on track is to combine all of your debts into one loan and pay it off in smaller monthly payments. Debt consolidation can be done in many different ways. The most important thing to do in this direction is to shop around for the best terms and lowest interest rate. Usually, terms have to do with collateral, or what you have to back up your loan principal. You might be surprised to learn that collateral terms vary even more than interest rates.
The best thing that can happen with a consolidation loan is that you get enough money to pay off all of your debt at a rate you can afford and on terms that allow you to change your payments up or down in the future. In some cases, this may be as easy as getting a line of credit or extending one long enough to get back on track.
The worst thing that can happen is that you go bankrupt, because you lose your creditworthiness and it will take you years to get it back. The few chances to get credit after bankruptcy are not good because they tend to keep you in a cycle of debt payments that can make it take longer and cost more to get out of debt.
But between the best and worst cases, there are solutions that can help you get rid of your debt, reduce your stress, keep you from going bankrupt, and give you the chance to take charge of the rest of your life. Read "7 Little Things to Get Out of Debt Fast" at www.h4h.biz/debt-advice for another idea. No pain, no gain, because even though these things may sound easy, they take a lot of work to get the process of managing debt under control.
