Escape the stress of debt sooner rather than later

0404162Accumulating large sums of debt can happen easier than you think. Because of how easy it can be to obtain credit these days, it can be all too simple to get yourself into a debt situation that you find difficult to escape from. Indeed, many people find they are constantly in some level of debt as they repeat the cycle of borrow > spend > repay > borrow, which for some people who are not effectively financial literate, can mean the accumulation of a large sum of debt that weighs heavy on your shoulders.

The problem with debt is that it can cause a hefty stress on your life. It can affect family life, and has even been shown to have a big impact on blood pressure and quality of sleep. Many people will recall laying awake at night struggling to sleep because of the thought and worry of the debt.

However, you can get yourself out of it and it doesn’t have to be like that forever. There are many stories on the web, like this one, which recall how people go from bankruptcy and large sums of debt to being back in the black.

Wonga, a loan company in South Africa, often lend out payday loans to people looking for quick access to cash. They advise that their customers think carefully before applying for the loan. They say you should ask yourself three questions before making any purchase,

  1. What’s it for?
    2. Can you afford it?
    3. What will it cost you?

So, if you’ve seen a luxurious holiday advertise that you really want, perhaps you should take a step back before impulse buying. Think how much you need that holiday – if you need a break, why not go somewhere closer to home that is cheaper? What is the cost of that holiday compared to the amount of money you have? If you can draw on savings, is that wise or do you need the savings for something else? And finally, ask yourself what the holiday will cost to you in the long run. If you are taking out a loan from a reputable company, will the interest rates make the cost of the overall holiday much higher? After considering these questions, you might be in a better position to choose how to spend the money.

Many people who are struggling with debt need advice and information about consolidating their debts. If creditors are getting on your back, you can take legal action to stop them from contacting you. There is also some legal help to reduce your debt in some circumstances, so it is always worth looking into your options carefully. Never be afraid to ask for help – there are many people in the same situation as you. The more you procrastinate, the worse the debt can become.

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