How Did You Get Here?

That is probably the most common question asked by people who are looking at mounds of debt with no relief in sight. They look at their bills and ask how did this get so bad and how did I let it happen? It is a series of small mistakes that eventually add up to the much larger picture.

One of the biggest mistakes that people make is in managing their money. They had money, now they have debt, and now they are looking at debt consolidation, etc. to try and help them get a hold of it. If you are not looking at your money and tracking every penny, it will get a hold of you and next thing you know you have lost thousands of dollars on nothing. Paying minimums on credit lines is a great way to show where your money goes. You keep paying more and more interest instead of paying down the debt itself.

Sometimes it is a situation that has thrown you into debt. Perhaps you just got divorced or your spouse died, leaving you with only one income. However, the best thing to do in that case is to completely change the way you spend money. Get a smaller house; get rid of unnecessary expenses, etc. in order to keep yourself out of debt. You need to live within the means that you currently have, not what you used to have.

Then there are those that lose money on gambling, drugs, alcohol – etc. Any addictive behavior will lead to a loss of money as you spend money to feed that addiction. You need to get assistance from someone to help you handle the addiction, or you will never get debt free. If you are already in debt, look to a debt consolidation to get yourself back on track, and then focus on moving forward instead of dwelling in the past.



 

 

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