Whether we like it or not, but we all suffer from debts at some point of time in our lives. Does that mean life will come to a standstill because we fear being in such a situation. The debts can be either too big or can be small and manageable. When in a financial crisis, nobody has much control over it because they don’t come into such a situation deliberately. These loans could be college loans or even mortgages, whatever it might be, it has the scope to rack up your credit card bills on a large scale. Debts are always unpleasant and there is always the risk or tension of how you will repay the debt amount religiously month after month without missing out on the instalments even for a single month. To add to your woes, several people in a hurry to pay the loan take up some more debts and before they know it, fall into a bigger financial trap with no way to escape it. The pool of financial debt that they eventually fall into leads to further problems and the last resort to that would be the debt consolidation loan. Understanding the growing need of this type of loan, there are several debt consolidation services available to help you meet your financial needs.
Debts hurt us more than the heavy wallets, that’s not all, the stress to repay loans also affects our health and relationship with family members. Going by a recent study conducted by the National Foundation for Credit Counselling (NFCC), it is believed that 24% of the people have stated that their financial anxiety has impacted their health and 27% of the people felt that the debt stress affects their relationship with family members.
However, the debt consolidation loan is the solution that comes much later. In fact it comes only when people fall into several loops of debts and loans. As of now, the question that is hitting everyone’s mind is, why is there the need to suffer from debts in spite of making so much of plans about securing our future?
Let us look into the factors those are responsible for us to fall into financial debts.
- Visualizing Money in Wallets is Different from Credit Cards – The money consumers see in their wallet and the money that they spend via their credit as well as debit cards are visualized differently. The human brain reacts differently when it comes to these two forms of money. There is a part of the brain that can process very well the monetary transaction but cannot comprehend the transaction that is done through the plastic cards. Going by facts, a recent study conducted in the Massachusetts Institute of Technology states that people tend to pay more than twice the amount if they have credit cards with them compared to using cash. The reason being, since they cannot see the money that goes out, the tendency to spend more increases.
- We are always Optimistic about Money – People hardly chalk out any to do plan where they can list down their regular expenses. Listing down regular expenses gives people the scope to understand the areas where they spend a lot. This would also give them the scope to cut down on the costs considerably. In most cases, people visualize that they don’t spend much unnecessarily and this is the main area where they go wrong when it comes to assessing themselves. Hence, before they realise it, they fall into a financial crisis.
- We are Impulsive by Nature – Young independent professionals are impulsive in nature when it comes to shopping. This is the major reason why people fall into some sort of debt traps. The most common stress buster for many is to shop and forget about the stress related to work. The best way to prevent from falling into the shackles of debt and loan, it is important that we take a stand and control the impulsiveness within us no matter how successful we are professionally.
- We Forget about the Little Payments – We tend to ignore all the little payments thinking that they not costing us too much on our pockets. However, that is not the case and we are extremely wrong in thinking that way. The primary reason for that being, every little payment made on a regular basis amounts to a lot of money after a long span of time or by the end of the month. Therefore, it is important that we stop ourselves from making these small unnecessary expenses that might drain us out financially after some time.
So it is time that we not let the marketing strategies of several credit card companies take the better of us. Since that will only make matters worse and even if don’t want, we would eventually fall into the financial traps and from there on it will go all downhill. We need to take the reins in our hand and stop from falling into the financial traps of debts.
