3 Reasons Reducing Debt Is Good For You
In this instant world where money seems so easily accessible here are 3 reasons you may want to consider reducing debt and not letting it snowball.
1. You don’t have to put your life on hold.
While there is nothing wrong with debt, unmanageable debt is another story. Think of debt like a seesaw. The more debt you have the less ability you have to save.
No savings means life gets put on hold, unless of course you take on more debt to fund what you really want to do in life. Truth is though, there are only so many times you can get away with a bandaid before you are going to need surgery.
Reducing debt to the right manageable amount for your personal circumstances opens the door to adding back the fun and enjoyable things into your life.
2. Debt management is a way of life, not a quick fix
Habits that have allowed your debt levels to get where they are don’t change if the debt suddenly disappeared.
That’s why most people who consolidate a bunch of debts find themselves right back where they started.
It’s not always the repayments that create the debt problem it’s the choices and habits being made along the way.
Managing debt levels so they go down and not up takes time and focus to both identify and change the habits that created the debt.
Replacing them with better money choices doesn’t happen overnight, it’s not a quick fix but it is possible when you become intentional about what you really want.
3. Debt is not a solution. It’s a trap
Debt can seem so easy to get whether it’s that long-term 5yr car or personal loan or that short-term 4 week EZY Pay option.
No matter what form it takes, it is simply robbing you of your future money and lifestyle.
One of the main reasons we gravitate to debt so easily is the debts we already have are getting in the way of our ability to save. We become trapped from building our own resource.
It’s also very attractive spending someone else’s money to get what we want right now.
When you can turn that around and save the money first you then find yourself thinking twice about spending it. You want to protect it.
To test this concept try this.
Instead of putting something on Ezy pay tell yourself you will be back in 4 weeks to pay cash and instead save the money first.
Then see if it still has the same attraction for you to spend your money on in 4 weeks time.
Chances are you will change your mind or use your cash for something else of better value to you. Now you aren’t trapped, you are experiencing freedom.
Getting the fun back into life, developing habits that create better money choices and getting away from seeing debt as a solution takes action and a decision.
Why not set up a plan using the free budget planner and track what is happening with your money over the next month. You never know what a difference it could make to reducing your debts until you have a plan in place.
And remember, if it seems to hard a consultation is a great way to fast track getting a plan in place that will work for you. Feel free to schedule a consultation any time.