How To Break The Cycle
In this day and age’s society, one thing is very clear; debt is unavoidable, especially if there are private lenders that provide loans for people with bad credit. From the time kids nowadays graduate high school, they are putting themselves in a very precarious position. They must decide to take on debt in order to go to school in the hopes they get a job with enough value to pay off that debt.
With the modern economy today, taking on debt doesn’t have to be a scary, daunting endeavor and is an outstanding way to pave your financial future. The hard part is keeping the beast of burden in check. That is, staying ahead of your debt the difference between financial security and financial ruin.
There are a few things to remember when you are jumping into the fray with debt. One thing to remember is to never bite off more then you can chew. Loans are great for making large purchases like a college education, a home, or a car. However, one’s has to remember that just because they can get a loan to buy that $450,000 home, doesn’t mean you should. If you take a loan, you should try to negotiate the monthly payments so that they are not a burden on your income. Keeping the regular monthly payments as low as possible will help ease the load if you should fall ill, or lose your employment.
Something else to keep in mind when taking on debt is communication is key. Most companies who offer lines of credit don’t like sending outstanding debt to collection agencies. These collection agencies charge a fee, and its taken out of the debt owed. If you are going to miss any payments its best to contact the company and make sure they are aware of the situation you’re in. While this may help you, this is also not something you should have to do repetitively. Companies will work with you, but no one is going to go out of their way to bend over backwards for you every time a payment has come due.
Living above your means is something our culture has fallen victim to, and it is no good way to live. Our ability to by has become a symbol of our status. Naturally, people get caught up in buying the biggest and best things, so our lifestyle and or paycheck cannot work together. If your single and working at a fast food chain making minimum wage and doing a little better than just scrapping by, you should be looking to buy a 5 bed 3 bath house.
If you would like to own your own home, buy a trailer. It’s all you need. I know what your thinking. My friends will tease me about owning a trailer and your probably right. But in three years when your able to make a purchase on a new home, and your friends are asking to rent the trailer so they have a place to live at a reasonable price, you’ll be able to tease them back.