VIEWS: 55 PAGES: 7 CATEGORY: Debt & Credit POSTED ON: 8/22/2014
Debt counseling, also known as credit counseling, is designed to help people restructure their finances and debts so they can pay their obligations and, if possible, avoid bankruptcy.
common reasons people get into debt Unaffordable decisions, lifestyles and turning a blind eye to financial problems are all reasons to slide into debt. Sometimes can come unexpectedly and turn for the worst expensive bills, because we live in the culture where things are costly and borrowing is easy. When debt became out of control, people with that problem feeling powerless and scared for the future. http://payplansolutions.co.za getting into debt Borrowing money is a standard way to make big life changes such as buying a house, getting a car or starting a new business. If someone with a steady income takes a loan to pay for something, then also do know that they will be able to pay it off within a certain time period. getting into bad habits Getting to alcohol, drugs, gambling, sex and shopping can all lead to debts. Even if they know it is bad for them, they will find a way to do it so they can feel pleasure and aliveness. And they can quickly lead to serious money problems. trying to get fake lifestyle It is common to feel that, we must have the right clothing, the right hair and so on. But very few of us can afford these lifestyles, which we really want. Sometimes we can kid ourselves for a while to spend money we don't have. lead to bad decision Sometimes because of impatience, lack of research and misunderstanding, we can lead to a bad decision that results in debt. Such as getting on the property ladder at the wrong time, taking bad investment advice and taking payday loans etc. spend blindly Some people used their credit cards to spend blindly while avoiding their bank balances so they can quickly lead to huge bank charges that add up over time and result in serious debt. live an unplanned life One very common reason for uncontrollable debt is neglect (Idea of budgeting). Keeping receipts and building accounting spreadsheets is enough to make them run for the hills. We can't plan for each thing that happens in our life. Those unplanned life changes can cost a lot of money. Such as if one earner dies, the rest of the family might struggle to survive on a reduced income, because of divorce dividing of two incomes often results in debt and fires, flood or earthquakes etc.
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