Monday, January 16, 2012

Getting Out of the Debt (i)

In my previous articles, I have gone over explaining the benefits of living debt free. Here, I‘ll try to go over how to get out of the debt, if someone has any. As mentioned earlier, it is quite easy to get into the debt. However, it is awfully difficult to get out of one. 

These days, credit cards are being used quite frequently for purchases ranging from everyday use to the luxury items. Sometimes, people walk into the store and something catches their eye. They may not have the cash on hand but they want that item so bad that they can’t wait to have it. And then comes out the credit card. 

Now, the above situation could be taken in two instances. One, that the individual has the money but does not have access to it until a later time, but has the ability to pay back the credit card. And one, who does not have the money, but hopes that he, would get the money from somewhere to pay for the credit card at a later time. These are two extremely different situations. 

Credit cards should not be used for ‘instant gratification’. They should be used for extreme emergencies. Don’t use credit cards if you cannot pay for the purchases 100 percent. Extreme care should be taken while making purchases with the credit cards. The interest rates on credit cards are huge. Once you have made a purchase with a credit card, and tried to pay back in installments, you would have paid back many times over for that single purchase to the credit card company. 

Let’s say that someone has got into the ‘guilty pleasure’ of making a luxury item purchase with a credit card. Well, for once, stop every other purchase and make priority of paying back to the credit card company as fast as you can. It would seem like you have fallen behind in your life for paying but if you didn’t pay the credit card quickly, the suffering of paying in installments would continue. So be prudent and wise and think through in spending the credit card money. Believe me, it is not ‘free money’, as some would suggest. 

Once you have taken the debt out from a credit card company, make a plan of paying back the money. And stick to that plan. And once you have fulfilled the commitment of paying back, don’t make the mistake of getting in, just for the sake of it. Even in these modern times, cash is still the king. Try staying within your ‘means’. Life will be simpler and easy-going. There will no running around, getting worried regarding monthly credit card payments. 

If you do have the money, and are living large, that is great and enjoy your life. But if you don’t have the money but are trying to live large, don’t worry ‘bout it. Nobody has the right to judge you based on what you are wearing, driving and what not. So don’t over-burden yourself and spend the money which you don’t have. Just take your time; everything will come your way sooner or later, if it is meant to be.  Be thankful for what you have and always believe in yourself.

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