Blog

3 Mistakes You Must Never Make When Trying To Get Out Of Debt

By Debt.ca on June 1, 2012 No Comments

Everyone wants to learn how to get out of debt, and why not? Nobody wants to be in financial trouble. But even as most of us work hard to try and get out of debt, there are a number of mistakes that we make, which can cost us a great deal and even put us at a disadvantage in our efforts to seek the debt relief.

If you are making any of the mistakes below, then it may take you longer to get out of debt. Try to avoid these mistakes at all costs.

1. Failing to put it in writing

Yes, you want to get out of debt, but have you put it down in writing? In order to affirm it in your mind as a goal you must set a specific time to get out of debt. If you don’t write it down, then your goal to become debt free becomes just like any other idea that may never be executed. You may wonder why you need to write your goal down when you already know it. Well, putting it down makes it real, it makes it formal and in a way commits you to the goal. Some of the most successful people in the world are said to have written their goals on paper before they seriously embarked on pursuing them. Indeed some of the best leaders in the world did exactly the same. You may never achieve any major degree of progress if you can’t write it down. The secret to remaining focused on repaying your debt is by being specific and ensuring that you constantly remind yourself of the task at hand. You could for instance write “I want to get out of debt by the end of this year”. Failing to write it down can be interpreted to mean that you are not so focused on eliminating your debt.

We must also mention that writing it down is not enough, you must work on a plan and see to it that the debt is cleared within the time you allocate. It is also advisable that you propose to
clear your debt way before the deadline given by those you owe. This gives you peace of mind because you will know that creditors won’t be knocking on your door for their money.

2. Keeping your spending habits unchanged

You can never get out of debt if your spending habits remain unchanged. If you are not willing to cut any expenses or maybe you hope that things will somehow work out and one day you will be out of debt, think again! You will start to make serious steps towards eliminating your debts the day you realize that getting out of debt is a task you have to attend to just like any other job. You ought to make a personal decision and remain objective until you are completely out of debt. So if you have cable TV and your financial statements show enormous debts, can you go ahead and do without it until your debt is cleared? If you have an expensive car, make the painful decision and sell it or stop using it altogether and divert the fuel money to your debt payment plan. You’ve got to get serious about debt reduction in order for your efforts to be worthwhile.

3. Spending more than you earn

This is so obvious that we should not even mention it! But we will mention it anyway because unfortunately most of us never really seem to get it properly. A famous piece of advice goes like “You will be in debt forever if you keep spending more than you earn”. There is no way you are going to be debt free if you are always spending more than you earn. Spending more than you earn simply means that you will always have to get the extra money from somewhere else, and this is debt which you will have to repay at some point – however long it takes.

No one likes debt, yet very few of us can avoid it. Even the richest men and women on earth have had to deal with debt at some point in their lives. People like Donald Trump have had to file for bankruptcy, and there are thousands of examples where super wealthy individuals have had to deal with the challenges of debt.

So don’t be’ ashamed of your debt situation. Instead, commit to getting out of debt (see credit counselling services) and try as much as possible to avoid the mistakes we have outlined. They are clearly costly!

Debt.ca

Admin


Having the Money Talk with Your Romantic Partner

By Rubina Ahmed-Haq on March 16, 2017

Money is one of the major reasons couples fight.  A study out of Utah State University found that couples who fight frequently about money are more likely to get divorced. That’s compared to any other issue they might fight about, child rearing, their love life and household chores (as an example.) Before your relationship moves to…

How to Save on Heating Costs, Even as a Renter

By Jordann Brown on March 9, 2017

One of the best ways to free up room in your budget to pay down debt is to trim your expenses. There are plenty of ways to trim your budget, but one often overlooked method is to reduce your utility costs. Home heating makes up 42% of your home’s overall energy use, and drain your…

5 Tax Breaks You May Not Know About

By Alyssa Davies on March 2, 2017

We’re getting closer to the time of year when the Canada Revenue Agency awaits your annual income reports. From there, they will determine whether or not you are income tax receivable or income tax payable. What’s the difference, you ask? Income tax payable means that you must pay the government within one year, and income…

10 Personal Finance Bloggers Share Their Best Money Advice

By Alyssa Davies on February 20, 2017

Every financial situation is unique and unlike others experiences, which is why every piece of information you can absorb during debt repayment will help. I know, I know, you’re tired of hearing the same old instruction from the same old places. So instead, we decided to see what others (who have been through similar circumstances)…

No Comments Leave a Comment  

Leave a Comment

Free Savings Estimate

How much do you owe?

$100,000

$5,000
$100,000
Live Chat
Welcome to our Live Chat
Agents are not available at this time. Please leave a message. Thank you.
First Name
Last Name
Phone
Email
Postal Code
Debt Amount
 
PHP Live! powered