Evading debt is not always an easy task particularly with the financial flexibility that’s available to us now. A growing number of people are deciding to pay by card and choosing an automatic payment or subscription-based model for their services. This can make it very easy to start collecting debt fast. Living a debt-free lifestyle can certainly help you enjoy life without stress. In a culture that focuses on consumerism, controlling your money can be more complex than ever before. Here are some of the top unexpected ways you can fall into debt.
Financing
As you start to finance numerous purchases or even start paying for a subscription-based plan, it can be tough to start following your money over time. You might be shocked how much you’re really losing out on and how much you are gathering in interest by choosing to pay via plastic. A zero interest plan can seem like a great idea with upfront financing but if you don’t pay it off in time, you could face an extensive amount of interest when the loan is due. If you have proceeded to refinance numerous offers or simply let some of the items that you financed, continue to sit overdue, your debt can rack up very quickly. If you can’t afford something upfront you may want to consider saving for it rather than immediately financing it. Growing your debt can happen quickly when you continue to finance your purchases.
Monthly Subscriptions
Monthly subscriptions are everywhere today. You can see a variety of low-cost fees for monthly subscriptions and even the opportunity to pay off multiple products in a monthly subscription-based format. When people actually start to analyze their spending over the course of a month they can be surprised as to how much they’re really spending on services that they may not need. $9.99 a month may seem like a very small amount to pay for a music streaming service but when you add in two other video streaming services, a monthly subscription for your phone, a monthly subscription for your gym, and more, it becomes easy for your subscriptions to start adding up. It’s not uncommon for someone to be paying several hundred dollars every month on automatic subscriptions. Saving some of this money instead of having it automatically come out for a subscription could be a great way to start to pay down your debt. If your monthly subscriptions usually come out of a credit card, this can only work to increase your debt particularly if you aren’t paying down the monthly costs of each subscription.
A Lack Of Budgeting And Financial Planning
Simply spending money as it comes in will never leave you ahead. It’s easy to start seeing problems with your finances upfront if you are willing to track your finances over time. Teaching yourself some of the basics of budgeting and making sure that you are not overspending can help you to control your debts. Proper financial planning means checking out how much money you’re spending, how much money you have coming in, and how much you’re going to be spending on paying down your debt. There are plenty of ways that you can create a strong fiscal budget as well as applications that you can use for paying down some of your debts while working towards financial goals. As you continue to visit new financial goals and use budgeting and financial planning, you can make sure that you never end up left very far behind due to a lack of planning.
Keep some of these top ideas in mind if you are trying to work your way out of debt or avoid debt in the first place. It can be very easy for you to start stacking up debt if you don’t have the proper financial system in place. Avoid some of these top pitfalls so that you can make sure you will enjoy a brighter financial future that is free of overspending.
If you have fallen into debt and not sure how to move forward contact us today for a free consultation!
This post was written by Trey Wright, one of the best bankruptcy lawyers in Tallahassee FL! Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, which specializes in areas related to bankruptcy law, estate planning, and business litigation.
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