Everybody has tried to save money, tried to get out of debt, tried to stay away from getting into more debt, etc. And what do we all have in common with that entire statement? The word “tried”.
We’ve all tried but most of us have failed one way or the other, or even at least our efforts get delayed or postponed due to unforeseen circumstances. Trying to get out of debt can be similar to trying to lose weight or sticking to a budget. We all start off strong: sticking to the routine that we’ve set out for ourselves, sometimes even surprise ourselves by achieving more. But then after a little while, we get derailed and get off track with our routines.
Sometimes it’s intentional; we find excuses and postpone our efforts. Sometimes it’s unintentional; emergencies get in the way, unexpected circumstances pop up and we can’t find the time to focus on our routines anymore. And then before you know it, you’re completely off track and couldn’t bother to get started again.
Trying to get out of debt also goes through the same kind of obstacles. You try and you try but most of the time, it just doesn’t work out. If you find yourself in this sort of situation a few too many times, you might have to figure out why this keeps happening and fix it. Here are a few reasons why this might be happening:
Why can’t you get out of debt?
Your earnings and expenses don’t match
This sounds too familiar to all of us but it’s relevant as well. Because unless you know how much you’re actually earning and how much you’re actually spending, you wouldn’t know whether you’re spending more than you should. And with the easy accessibility of credit cards, you end up racking up your credit card debt. So you need to calculate how much you spend on a daily basis, how much your monthly and weekly bills are, and then see if your earnings are more than what you calculated. If your earnings are less than your expenses, then you have a problem. This is the main reason why you can’t get out of debt: you’re spending more than what you earn and you’re loading up on credit card bills.
You use cards now and paying/panicking later
This is the same issue. You’re so used to using your card because it lets you buy what you want and what you need right away but you forget that you’re supposed to pay it later down the track. That’s the problem with using cards. It gives you instant gratification but you have to suffer the consequences of credit card debts later in the near future. So unless you have enough funds to cover those debts, you won’t be able to get out of debt easily.
You don’t know all of your costs
This happens when your bills come in at different intervals. Some bills are weekly, some are monthly, and some others are quarterly. You might be fully aware of your weekly and monthly bills but when you receive your quarterly electricity bill which could turn out to be a lot more than you would expect, you might not have enough funds to take care of all your bills that month. You need to know all of your costs and expenses. Keep a timetable of all the due dates of your bills and other debt repayments. Only then will you be able to figure out how to budget your next pay cheque.
You’re not determined to repay your debts
Sometimes it’s as simple as not wanting to repay the debts. You’re not determined enough to get out of debt. Maybe you’re subconsciously a self-saboteur and you just don’t know it. To prevent this from happening, you need to actually create a budget. Be proactive and create your own budget after you find out all your expenses and costs and also your earnings. Then you can create a doable budget and save money in the process. Then you’ll be able to get out of debt sooner rather than later.