The 5 Mistakes that are Keeping You in Debt
If You Haven’t Tried to Negotiate Yet, Start Trying Now.
This is hands down the first thing you should try to do once you’ve set your mind to paying off your debt. Most people think that negotiating isn’t even an option for them or are too afraid to even ask. If your debt is from credit cards then negotiating is definitely a great first step. If you’re too afraid it’s understandable but don’t let your fear stand in the way, this is your life and financial freedom so take charge now. Simply call you credit card company and ask if a lower interest rate is an option. We know so easy, but again it’s not something that most people think of, of course they might say no but it’s worth a try. Here are a few things to keep in mind when calling up your credit card company.
- Do your research, know your current interest rate and know what a reasonable lower is.
- Make time to call, don’t do it when you’re about step out, you could be on hold for awhile
- Make sure you talk to the correct person.
- Be polite but firm and confident
- If they say no, ask when they might actually be able to lower it.
Negotiating might not be something you’re comfortable doing but in the long run if you are able to lower your interest even by a fraction you will end up saving yourself a lot of money on interest charges. Follow our tips for making the call and remember that you’re just talking to a customer service representative and if they can’t help the worst thing they will say is no.
Stop Thinking it’s ok to be in Debt Simply Because Everyone Else is.
Yes a lot of people have debt but that doesn’t mean that you should too. One of the biggest mistakes you could be making is thinking that it’s ok to have debt because it just something that everyone has. Watching friends and family spend money on fun activities or shopping is hard especially if you know that they have debt as well but don’t care. If you are unsatisfied with being in debt then you are the one that needs to do something. Think about how you feel now and how you’ll feel once you are debt free. Debt isn’t a fad, so don’t treat it like one.
You Can’t Pay off Your Debt Without a Plan.
Having a plan or a budget or simply a list of stuff you need to accomplish is the best thing you can do to help yourself pay off your debts. Lots of people think that a budget or plan is unnecessary but if you’re committed to becoming debt free, a plan is essential. Writing down a plan and creating a budget will show you how much money you’re spending on things like food, entertainment and transportation, once you understand all the numbers you’ll be able to see where you can cut back. Make a plan and stick to it, you’ll be thanking yourself later when you’re debt free and financially stable.
You Need to Change Your Attitude.
If you’ve tried to get out of debt before and failed then it could have been because you were still in the mind frame of someone who was bogged down by debt. You need to start fresh with a need outlook on both your life and your financial situation if you want to succeed. If you start your debt repayment process by changing your attitude then we bet you’ll be able to succeed this time. Be proactive about the small changes you need to implement and the larger more important changes should be just a little bit easier to handle. Changing your attitude could help you change your life.
You Get Distracted by Other Priorities.
Getting distracted by other priorities could be having a negative effect on your ability to become debt free. Life is one big distraction, but it’s how you deal with the distractions that could help you become financially free. Unfortunately you need to make repaying your debt the number one priority that means saving money needs to come first over things like shopping, having fun and going out with friends. If you feel yourself being distracted by friends who are always spending money then create a budget or rewrite the one you already have, make sure your goals are fresh in your mind and reaffirm your commitment to becoming debt free.
No one’s perfect so don’t beat yourself up about having debt; instead harness your energy into dealing with your debt and paying it off. Avoid these common financial mistakes that might be keeping you from your goals and you should be on your way to being financial free in no time.
Do you like this article? Check out a similar post titled Mistakes to Avoid When Paying Off Debts.