Tag Archives: debt traps

Consolidate Bills-getting Rid Of Your Debt With A Plan And A Little Discipline





When you decide to make any type of life change, following a plan will help to ease the anxiety and stress that comes with it. With a plan you will need to discipline yourself. When it comes time to consolidate bills, make no mistake, this is a life change, and it will require discipline and a plan. When you have come to the decision that you need to consolidate bills, it’s not so that you can free yourself to run them up again. It is so that you can get your debts paid off as painlessly as possible and then not run them up again.

A plan will help you to get through this time of change. You will have to take some time to think about how you spend money, what you can afford to do without, and why you are consolidating bills. As you spend money in the next month or so, take note of everything that you spend money on. At the end of the month, review that spending and decide where you can afford to make cuts. When you consolidate bills you will free up more money each month, but you’ll want to use that money to pay off those debts, as well as use more cash, checks, or a debit card rather than a credit card.

Discipline will be necessary in this time of change. When you go shopping, decide whether you really need it or not. That will start you on your path to saving money. The next time a new blockbuster comes to the movie theater, wait until it comes on video. The popcorn is much less expensive in your living room and the setting much more intimate, and no screaming kids or loud teenagers. Seek out and use coupons whenever possible. Above all, when spending, do not use credit cards unless necessary.

No one sets out to gather so much debt that they cannot pay it off. Most of us go in with the intention of always being able to pay the bills, but sometimes those bills get alarmingly high. At that time, with a little discipline and consolidating bills, you can again get the best of your finances. Once that control is again in your hands, it’s more important that you learn to keep the newfound control. That is again where the discipline comes in. It is one thing to get yourself out of trouble once through discipline and the decision to consolidate bills, it’s quite another to keep that control by learning to spend wisely.

10 Unexpected Debt Traps – and How to Avoid Them

Staying debt-free doesn’t seem that hard in theory. All you need to do is spend what you can afford, right? Well, the millions of Americans in debt would disagree. It is not that simple. Anyone can easily sink into debt if they don’t have the right attitude towards spending and money management. 

Many people have the “buy now, pay later” mentality. If you don’t want to slide into the debt hole, here are 10 things you should avoid.

Paying Off Debt Using Savings

When you have a high-interest debt and some money in a low-earnings savings account, you may see it wise to pay off the debt with the money. But this strategy can blow off in your face. You will end up making things harder for yourself. You will not have any cash for emergencies. If you get an unexpected expense, you will be forced to borrow again to take care of it. 

Splitting Cash for Bill Payment

Say you have an extra $600 and decide to send $200 to three creditors or $100 to six creditors. This is not as smart as it appears to be. Small payments will not make much of a difference. Focus on one debt at a time.

Subscription Plans

Most subscription plans don’t cost that much. So you sign up on a number of them. When you add all your plans up, you will see how big of an impact they have on your savings and other goals.

Financial Purchases

You can buy anything with financing nowadays. What you don’t know is that with financing, you end up paying more. And you will also start buying things you don’t necessarily need.

Long-term Auto Loans

With most institutions, you can now finance a car for up to seven years. You may not even keep it working for that long. Always opt for a shorter period and a cheaper model.

The Rewards Game

With credit cards offering rewards, you may find yourself charging more purchases to win the rewards. but just keep in mind that you will have to pay off the balance plus interest rates.

Trying to Please People

Some people get into debt while trying to make others happy. You want your spouse to have a nice vacation or the children to enjoy their holidays. Communicate with your loved ones and help them manage their expectations.

Lack of Financial Planning Knowledge

A good number of Americans don’t know about financial basics. They have no idea how rent-to-own agreements, payday loans and other plans work. Fortunately, there are a lot of apps, websites and financial books with all the knowledge you need.

Ignoring Options

Almost all the purchases you make are optional. A new car is not a necessity and neither is that expensive degree you are financing. If there is a more affordable option, go for it.

Assuming That Debt is a Way of Life

Tons of people believe that debt is normal. There is no way to be debt-free. But you can change your mindset and be intentional about finances.