The personal debt crisis is taking over the world and no I’m not joking.
Everywhere we look we are conditioned to have the things we want now, we are conditioned to get into debt and have the instant gratification straight away. Golly Gosh how did this happen! Well in this blog I’ll explain how and then show you ways of changing your mindset and then help you turn your debt around!
Think about it this way – big corporations are out to make money right? Right. Absolutely!
They’ve created enticing deals to get you to buy into debt..
Think about it again.. this isn’t for your benefit, it’s for there benefit. They are making the money off you
“Buy this couch today, no money down, deferred payments and 36 months interest free”
All of a sudden you’ve gone from shopping for a lounge suite to shopping for the best finance deal because no matter if you had the money to pay for the lounge out right, you’re not going to pass a deal where you pay nothing and get to keep your money in your own bank account a little longer. It’s Human Psychology and they know it! You think you’ve got nothing to lose. So you get the best finance deal, the lounge suite and you’re on your merry way home with your fabulous new purchase (oh and money in the bank) and over the next few months you think you’re doing awesome at paying the repayments when the bill comes in, that when a new deal comes in it’s too hard to resist! The email goes a little like this:
Hi Jane,
We hope you’re loving your new Lounge suite! Because you’re one of our VIP customers, we want to offer you a one weekend only deal.
No Deposit, Deferred payment and 6 months interest free – This Weekend Only!
It’s like they know you could use a new coffee table – How can you resist!? you run down to the shop and pickup your new coffee table. What’s a little more finance?! It’s only $699 I can save that and pay it off before the 6 months is up….
And the cycle continues, eventually you run behind on payments or your financial situation changes and you end up paying interest, then compounding interest – yikes!
You then second guess every life decision you’ve ever made and consider debt consolidation, which let me tell you is not going to make your debt go away, its not going to pay your debt off faster it’s just making it easier for you too pay and they (the big corporations) are still making their money.
So you need to work out.. why do you go into debt?
1
Is it to keep up with what your friends and family have?
2
Is it because you don’t want to wait?
3
Do you not actually know why?
Are you self sabotaging and you had no idea?
Debt is a crazy hole to get stuck in and it take a fair bit of work to get out of!
Let’s Face your debt! – Why are you here? What would it mean to be debt free?
The first step to becoming debt free is to face the issues that led to your debt.
I believe that if you don’t know what your problems are to begin with, then it will be very hard to make any positive changes.
Yes, it is great to just start paying down your debt, but you also don’t want to fall into the same cycle of going into debt over and over again.
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