How much of your money is really yours? Are you in debt? How much do you owe? Credit cards? Catalogue debts? Bank loans and overdrafts? There are many different kinds of ways we can be in debt, but why do so many of us get trapped in a cycle that we simply can’t get out of?
When you used your credit card you never intended for things to spiral like this, so what went wrong? Debt can quickly consume everything around it, including your assets, your savings and even your mental health. So, why is it so common? Read on to find out why so many of us are trapped in a cycle of never-ending debt.
People fail to get help
If you’ve acknowledged you’re in debt and struggling that’s great, but a major factor of getting trapped within a debt cycle is the inability to reach out and ask for help. Often, people believe that they can resolve their financial issues themselves, however without seeking the latest advice that can be tailored to their situation, they may actually make their situation worse. Companies like Credifix are available with the latest in debt advice and management for those who are struggling to cope with their debts.
Keeping their head in the sand
It’s pretty easy to ignore those reminder letters or put them off until later. Emails can be quickly deleted, and phone calls can go unanswered, but the longer people do this the quicker things begin to spiral out of control and before long, they’re in real trouble. One of the most common reasons people find themselves stuck in a debt cycle is because they fail to acknowledge their problem until it’s too late!
Poor money management
If you don’t have a budget and constantly live outside your means then you’re going to find yourself trapped in a cycle of debt. Do you know where your money goes each month? What you’re really spending it on? Can you account for every dollar? If not, you need to start!
Gambling is fun and it provides a thrill for some. Especially when you win! Sadly, it’s addictive and those who win may find that their lucky streak becomes their undoing when the house suddenly wins. Gambling can quickly become a struggle to gain back what you’ve lost in the pursuit of that lucky hand or roll of the dice.
These days, jobs aren’t as secure as they used to be when someone finds themselves suddenly unemployed. It can turn their financial security upside down. Reaching out for advice is the best option here, searching for a new job and budgeting as much as possible to avoid falling into debt!
If you’re trapped in a cycle of debt, it’s important to recognise your monetary issues and seek advice as soon as possible.
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