Do you manage your debt or is managing you? We have become so accustomed to being in debt that we never stop analyze if we are properly managing or debt or has it become out of control. Income levels and are not factors in the way you manage your debt because it is important in all income levels and at all ages.. Unfortunately we are not thought this skill at an early age. As a result most middle age Americans now find themselves drowning in debt and living a life they cannot afford.Its not that debt is all bad, a little well managed debt can actually help.. It will help you maintain a respectable credit score and fair amount of credit.. This gives you the ability to finance larger projects in the future and is always there for emergencies. There is also that debt which is considered good. such as to make an investment in and income producing activity or asset. The problem with debt arises when people use to buy things that are considered luxury and not really necessary, to live a lifestyle that they cannot afford. Once we snared by this trap, it seems to get a life of its own..
Here are some common mistakes with debt.
Mortgage - Buying more house than you need or can afford. Any interruption in income is deadly.Student Loans- Students are leaving schools with record amount of debt putting them in a terrible financial situation for years after they graduate.Car payments Same as the mortgage situation buying too much car or too expensive car takes a big chunk of your take home pay.Credit Card Debt- The mentality of buy now pay later really hurts here, because we just keep on buying things we really dont need. W do not realize that with interest rate being so high the bargains we buy are very expensive and could take years to pay. So we take more credit cards out to pay the other ones and end up with a noose around our neck.Payday Lending Now you really are a glutton for punishment if you go to one of these lenders.
When we finally come to grips with the notion that we are not able to manage our debt, it is usually to late. Debt and Credit management should be thought at schools at an early age. Thsi should be taught in the same way that the dangers of smoking and drugs are thought because debt can also ruin your life. The fact is that itsnever too late to get the debt house in order.