Many people believe in buy now pay later, are you one of them? Are you spending money you do not have hoping one day you will catch up? Over 53% of people are afraid of have to budget their money and are constantly in debt because they feel that they are being restricted and deny enjoying themselves.
For many buying material things gives them a sense of worthiness because they have work hard and they deserve to go out and spent the money they do not have because it makes them feel happy. People buy with their emotions although they may not need what they are buying. In general, people are very optimist about their future and go out and spend their future earnings for they believe that they will be able to pay it off only to keep themselves in debt.
Many people are afraid to look at their credit card interest rate and are paying the minimum off which keeps them in for a long time and the credit card places are happy that people are not paying much off because they will go for your car or house to collect and keep you in debt for the rest of your life.
Most people have not put aside any money for their future retirement because they are heavy in debt between 10- 40,000 dollars and have over four credit cards. Is their ways to get out of this cycle?
Yes, one way would be to consolidate all of your bills into one if you can. If you are visual put it up somewhere in your house that you can see each step that you are making to bring down your debt. It is in your best interest to pay of the bill with the highest interest rate first. Start have 20% of your pay check taken out and put into a retirement savings account which can be put into a Roth account.