March 1, 2016
June 3, 2016


If you are always using your credit card without checking the balance, you lack a realistic budget, and you are frequently buying little things you don’t need; you will find it difficult to get out of debt.

Surprisingly or not many people don’t know that paying your debt rather sooner than later is actually saving money, rolling the debt over from month to month is like setting your money on fire.

What are the most common reasons for people’s inability to get out of debt?

Too many expenses

Things are pretty obvious when it comes to expenses: if you have a mortgage to pay every month, as well as a lease for the new car, other monthly expenses like food, utilities and so on then you will probably never have enough money to pay off your debts. The more you spend, the more your financial situation will go down hill.

If you are determined to get rid of debt, the first step is to cut the expenses. Change the new car for a second hand one, cancel the subscriptions to the fancy gym, glossy magazine and expensive internet. To begin to change, you will need to review all useless expenses and start cutting them. I know you have been going to that gym for as long as you can remember, but can you really afford it now?

No additional income

If you have just one source of income, then your expenses are completely dependent on it. It is no secret that if you want to save money and get out of debt, aside from cutting on the expenses the next thing you can do is supplement your income.

Working independently or freelancing in your spare time can give you that extra couple of hundred per month that will help you pay off your debt.

You don’t keep track of your expenses

Do you know where your money goes every month? Does it happen to you to stare at the balance of the credit card at the end of the month and wonder where did all that money go? To be able to pay off debt, you will need to keep track of your money and not only the big expenses but everything else. This way, you can adjust your budget from month to month and see clearly what is taking a lot of resources.

You spend money on things you can’t afford

You might think that if you can buy it, then it means you can afford it, but things are not black and white when it comes to finances. That new phone that you just got, the expensive holiday that you went on with your friends, the cool clothes from famous brands; at the end of the day they are all more debt. So is it really worth it to spend that much on brands and personal image when you are drowning in debt from a month ago?