D' Finance Bench

The Right Place To Sit At For Financial Advises

Gasping For The Debt Free Life

debt reductionA debt is basically the quantity of money that one owed to a financial institution (e.g bank or credit company).  This is presented in form of different repayment terms like bond, loan or mortgages. Most of the time, you will be required to pay a certain interest rate based on the amount that you owed. The whole amount must be paid according to the term that both the debtor and lender agreed. There would be a required penalty if you can not re-pay your debt on the set time.

One particular cause why people tend to dive into debt pit is due to income reduction. The prices of the things needed for our daily lives increase, yet, it is comically sarcastic how wages would usually go down due to some economy crap. That is an unfair fact, but what can we do? That’s why people would rather be rescued by loaning money. The way you managed your financial matters also has a huge impact on your debt issues. If you happened to have unorganized way of managing your money, you would likely end up in cycle of endless debt. There is gambling too, a moronic way of obtaining money. or it would be the other way around where you’ll become instantly “a thousand dollar richer”.  Some of us would rather take the short cut of “freeing” theirselves from money issues by means of spending money for the “chance” of doubling it, that is, if they are lucky.  During medical emergency times in the family, and the affected happened to have no medical insurance or money at all, then the only option is by borrowing money. This is when debt starts to arise. The patient can’t work and he has debt from his hospitalization expenses, you can figure out the rest of the scenario.

Debt Reduction Strategies

  • Go for credit counseling
  • Consolidate your credits
  • Negotiate with the creditors
  • Start making a money-management plan for yourself

Avoiding The Debt’s Pitfall

  • Manage your money well
  • Keep track of your expenses
  • Pay existing debts
  • Find great store deals

The best way to stay away from an endless debt dilemma is by disciplining yourself and spending each bucks wisely. Only loan money when it is needed for very tight situations and not for the sake that you are wanting to have the latest gadgets.

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August 28, 2012 - Posted by | Debt | , , , , , , , , , ,

4 Comments »

  1. […] money management plan is always subject to change if your life situation changes. The object of a good budget is to make your money go the farthest in helping you reach your goals, it is not there to force to […]

    Pingback by Create and Maintain a Budget « D' Finance Bench | September 25, 2012 | Reply

  2. […] money management plan is always subject to change if your life situation changes. The object of a good budget is to make your money go the farthest in helping you reach your goals, it is not there to force to […]

    Pingback by Start Saving! « D' Finance Bench | September 25, 2012 | Reply

  3. […] out of debt and then stay out of debt. If you can summon enough willpower and strength towards your finances and spending, then you will find yourself the winner in the game of debt. It may be easy to get into debt, but […]

    Pingback by Getting Out and Staying Out of Credit Card Debt « D' Finance Bench | September 25, 2012 | Reply

  4. Good advice!

    Comment by Susan LaDue | September 27, 2012 | Reply


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