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Why your debt situation is not getting better

Managing Your Money
 We all hope to reach financial freedom someday (Photo: iStock)

Debt can seem innocent but it has caused huge financial problems. Many of us do manage to get rid of this burden quickly but for others, it’s a real struggle.

If you’re currently in this situation, don’t be embarrassed because it happens even to the very best of us.

At least you’re aware that there is a problem and these are some of the reasons why things might not be progressing as quickly as you had hoped for:

You have no solid plan

Admittedly, there is some excitement when a loan you were hoping for gets approved. Once you see that money land in your account, you can even be tempted to throw a party.

When it comes to the paying part though, it’s another story. And something that can make the situation worse is when you don’t have an actual plan of how you will tackle the loan.

If you have extra income to support you or you don’t have a blueprint of how you can tackle the debt you have, it’s a bad sign.

You have to take the time to make a realistic plan that can help you be where you need to be financially.

 Are you spending money on things you clearly cannot afford? (Photo: Courtesy)
You are addicted to the cycle

Being a pro at taking loans isn’t something to be excited about. And actually, there is such a thing as debt addiction where you’re constantly taking loans that you don’t really need.

If you notice that you heavily rely on loans, it might be a sign that you’re a loan junkie. It means that you barely ever have enough to save for your future and that should concern you.

Small loans are easy money and they can be addictive. Admit that you’re impulsive when it comes to taking loans and stop the cycle before it gets worse.

You are not actively seeking financial advice

This is an important step if you have huge debts to pay. You need some extra help on how to tackle all that and one way is to seek financial advice.

You should work with someone like an advisor instead of trying to figure it out all on your own. It has failed all this time so what makes you think you can pull through this time around? Get help.

You’ve not adjusted your lifestyle

When you’re already struggling with loans, it wouldn’t make sense to force a lifestyle you can no longer afford. Debts can be dangerous and when you’re in a tough situation, you need to do all you can to pay it off and then adjust once you’re done.

Find ways you can save more like making monthly budgets and sticking to them and embracing a more frugal lifestyle as a way of improving your situation.

You’re not tracking your progress

It’s essential to have a clear perspective of where you’re at so far. When you don’t have a clear picture, it’s easy to assume that you’re not making any progress and lose motivation.

Track your journey so you can maintain the focus you have. This will also guide you on the kind of strategy you need as you continue to clear your debts.  

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