subject: Recognizing That Your Debt Management Skills Lack Is An Vital Starting Point In Debt Relief. [print this page] Do you manage your debt or is managing you? We are so used to being in debt that we never stop to look at if we are managing our debt properly or if its is totally out of control. Income levels and age are not variables in the approach you manage your debt because it is important in all income levels and at all ages.. Sadly we are not taught this ability in an appropriate time or when we are young.. As a result most middle age Americans now find themselves drowning in debt and living a life they cannot afford.
A little debt is not bad altogether. It will help you keep a respectable credit score and fair amount of credit.. It gives you a resource for emergencies and to fund larger projects in the future. There is also that debt which is regarded good. such as to make an investment in and income producing activity or asset. The problems with debt comes from trying to live beyonds one means and purchasing unnecessary luxury items. Once in this trap it seems that the debt snowballs as we try to preserve our status quo.
These are some frequent mistake when it comes to debt.
Mortgage - Buying a larger house than you need or can pay for. Any interruption in income is deadly.
Student Loans- Students are leaving schools with record amount of debt placing them in a terrible financial position for years after they graduate.
Car payments Same as the mortgage circumstances, buying too much car or too expensive car takes a big chunk of your take home pay.
Credit Card Debt- This is the biggest problem of all and the concept of instant gratification were we can buy now and worry about paying later. We do not comprehend 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.
By the time we realize that we dont know how to manage our credit its too late. Debt and Credit management should be taught at schools at an early age. They shock you in the early years showing what happens to people that smoke or do drugs. In the same way they should shock you and show you how people end up that took on too much debt.
