Blog

Facing Debt Problems

By Debt.ca on August 18, 2011 No Comments

Debt in itself is a big problem. Taking a loan and then returning it at a later date can have serious consequences. So we should spend as much money as we have rather than constantly borrowing and ending up with debt problems. If you ask 100 people if they want to be in debt, everyone will answer no as nobody wants to be in debt. The main reason people fall into debt is because they start spending money that we don’t have and then suddenly we end up owing money for things that we cannot afford. These debt problems can cause a lot of tension, stress, and even depression in severe circumstances.

When we start spending money that we don’t have, i.e. spending out of our limits, then we start borrowing money so that we can fill up the gap. This way most of our salary goes into repaying the borrowed money. It becomes a vicious cycle because we will borrow money, again and again, to maintain the same lifestyle as we don’t want to cut back on our daily needs and enjoyments. It continues this way until we have nothing except a pile of debt.

Being in debt is a big problem. It can make life very stressful which can result in increased tension between family members. What makes matters worse is that most of the time people try to ignore the debt they are in and don’t realize just how serious their debt problems could be in the future.

What do you feel when you are in debt?

A person heavily in debt means he or she tends to spend money without thinking about paying the debt taken already. It can be incredibly embarrassing to admit to family or friends that you are in debt and you don’t know how you will be able to afford your existing lifestyle. You have probably tried repaying your debt, but you probably run short of money month after month. You are scared to face debt problems and spoil your health and interest in life in the future.

How can I get rid of my debt problems?

The best way to avoid falling into a trap of debt problems is by not spending money that is not yours. So the foremost thing is to stop using credit cards and stop taking undue advantage of them. Spending money is easy but paying it back can be difficult, especially when you are being charged a high level of interest. Saving money is very important. Having a savings account will help you face an unprepared situation like a sudden hospital visit, car repair, or even a loss of income. You should have a properly planned outline of your income so that some part of the money you earn is saved and the rest is for spending purposes. Remember, it is poor management that leads people into debt.

If you are currently struggling with debt, check out our debt help section today for tips on battling debt!

Debt.ca

Admin


CERB Repayment

CERB Repayment – Why Some recipients Are Being Told They Must Pay The Money Back.

By Debt.ca on July 25, 2022

The dire nature of the pandemic meant that the federal government had to act quickly. They created the Canada Emergency Response Benefit (CERB). This benefit gave financial support to employed and self-employed Canadians affected by COVID-19. CERB benefits helped almost 9 million workers and their families stay afloat. Now, some of these people are receiving…

Awkward Conversations

How to Handle Awkward Conversations About Your Debts

By Debt.ca on July 21, 2022

Talking about the debts you owe is never easy. Regardless of the situation and who it involves, conversations about money are awkward. These conversations, as difficult as they are, are important. To make them easier, it helps to have a plan going into them. Here’s how to start the conversation, and how to ensure it…

Manage Money

How Different Generations Manage Money

By Debt.ca on July 15, 2022

How different generations manage money is an ever-changing topic. From saving to spending, each generation has different money habits. Do you think the way you spend money now is the same way your parents spent money when they were younger? Chances are, it’s not. Have your spending habits changed over time? Chances are, yes. This…

Raw Deal

When a “Good Deal” Turns Out to be A Raw Deal

By Debt.ca on July 7, 2022

A good deal is hard to resist. It’s like winning at retail therapy. Sometimes, good deals are an illusion. How do you know if a ”good deal” is actually a raw deal in disguise? Fortunately, there are some red flags in those red tags that can alert you to potentially higher prices. Anchoring – The…

No Comments Leave a Comment  

Leave a Comment

Free Savings Estimate

How much do you owe?

$100,000

$5,000
$100,000