No matter how you accumulate your debt, it is quite possible to pay for it and be financially free. Unfortunately, there is no easy way to get out of debt. On the other hand, try to avoid the following five mistakes that could prevent you from repaying the debt faster.
Do not negotiate
This is unquestionably the first thing you should do once you have decided to repay the debt. Most people are afraid to negotiate or even think that trading is not an option for them. If your debt is mostly credit card debt, then trading is probably the first step. Do not let your fear of bargaining prevent you from improving your financial situation. Call your credit company and simply ask if lower interest rates would be possible. Although very easy, the majority unfortunately does not opt for this option. Here are some tips to keep in mind during your call:
- Do a research, know your current interest rate and know what would be a more reasonable interest rate.
- Take your time when calling. Do not do it just before leaving home, it may take some time.
- Make sure you talk to the right person
- Be polite, firm and confident
- If they refuse, ask them when could they consider lowering the interest rate?
Even if trading is not your forte, have the courage to do so, as it could save you a lot of money in the long run. Use the tips for the phone call and, in the worst case, they will not just tell you.
Be part of the flock of sheep
It is not because others are in debt that you must be so. To think that it is normal to be in debt because everyone is so is a big mistake. Seeing your friends and family indulging in activities, traveling and shopping is a tough thing, especially if you know they are in debt but they do not care too much. If you are not happy with being in debt, you are the only one who can change something. Think about the well-being that the absence of debt will bring you.
Pay off the debt without making a plan
Making a list, budget or plan is the best solution to help you repay your debt. Many people think that a plan or budget is useless, but when you plan to pay off your debt completely, develop a plan of action is essential. In making your budget, you will see the amount spent on food, activities, transportation, which will allow you to make the necessary cuts more easily. If you make a plan, follow it. You will thank yourself once you are free of all debts .
Change your attitude
If you are trying to get out of debt, but you can not, it may be because you are bogged down. You must start a new page of your life, both personally and financially. If you start your repayment process with a change of attitude, you are certain to succeed. Start by changing the little things and the big changes will be easier to manage in the future. A change of attitude could allow you to change your life for the better.
Getting distracted by other priorities could have a negative impact on your debt repayment process. Life exposes us to a lot of distractions and it’s important to know how to handle them. Your debt repayment must be your highest priority. This means that savings go before spending, shopping or going out with friends. If you feel like you’re being distracted by your friends who come out frequently, make sure to budget for your expenses and make a commitment to pay off your debt.
Nobody is perfect. Do not blame yourself for the debts you have. Instead, focus on repaying them. Avoid the mistakes above and you should free yourself of your debt soon.