Reasons Why You Are Still In Debt

Reasons Why You Are Still In Debt

There could be many reasons why you are still carrying around debt. You are going to have to take a look at your surroundings and daily habits to determine what might be preventing you from having more financial freedom. If you find yourself pulling up to your residence and to packages left on your doorstep then you might want to consider rethinking the online shopping. If you don’t spend a lot of time watching television, then it might be time to cut the cord and purchase a streaming device like the Amazon Firestick or Roku. You can save money by purchasing streaming devices and subscribe to Netflix or Hulu to watch some of your favorite shows when you have time to actually watch them. There are monthly subscriptions that are less than $10 a month. That is a lot less than paying for cable monthly.

Amazon FireStick

Roku

 

We all need basic necessities so it is ridiculous if you don’t use coupons to your advantage. Grab the Sunday newspaper and clip away the items that you use most often. Some stores even allow you to double up on coupons to save even more money. If cutting out coupons and carrying them around is not your thing I would recommend downloadable coupons and loyalty programs from your favorite retailers and nearby grocery store. If you are going to the grocery store consider trying generic brands rather than name brands to save money. Some of the generic brands taste better. Give it a shot. You might actually like it.

Debt can be overwhelming and we have all been there. Don’t worry if you think that you can not manage this on your own. That is what this website was made for, to give advice. Being disorganized when it comes to your bills is never a good start if you want to get out of debt. Write down everything that you owe. The balances, available credit, who you owe, minimum payment, due date, and interest rate. A few years ago a law was passed that credit card companies had to show on your monthly statements how long it would take for you to pay off your credit card bill if you just paid the minimum about due and another section below that which showed how long it would take to pay off the credit card if you paid a little more monthly in 3 or 5 years. In comparison, from only paying the minimum about due that would take 10-15 years to pay off or paying a little more each month and it would reduce the years down to 3-5 years it would make sense to pay a little more each month. Set a financial plan for your debt for the next 1-3 years.

Here is an example of paying more than just the minimum amount due each month. 

 

You can implement a system called the Snowball Effect. With the Snowball Effect, you take your smallest account first and pay that bill off. All other accounts you pay the minimum and with the smallest account that you are working on with the Snowball Effect you put any extra money you have towards paying down that balance. Once you pay off that card don’t close it, but use the money that you were using to pay on that card for the next lowest credit card balance that you have until all of your credit cards are paid off.

Here is an example of the Snowball Effect being used:

Another way to save money is to stop going to the ATM machines. Go to your bank and withdrawal money. ATM fees can add up over time. Some of these machines charge $2-$4 just to use. Here is another way to look at the cost of using ATM machines. If you go to an ATM machine just twice a week for a year it could cost you $192-$768. You could be using that money to pay off debt and get back to the important things in life.

Gym memberships are a big waste of money. If you are not a person that likes to workout weekly I would not suggest signing up for a gym membership. Plus, some of these gym memberships have hidden fees so before you decide to sign the dotted line read the agreement. With a new year comes many resolutions and getting into shape is one of them. Exercise is not going to cut it if you are trying to tone up or lose weight. Eating right is also important. Look at what you are putting into your body and make the right choices to help you on your journey to losing weight. There are many exercises that you can do at home rather than jumping in the car and going to your nearest gym. If it is a nice day outside go for a walk or a jog. Breath in the fresh air. Remember that you need to make exercise enjoyable otherwise, you might lose interest.

Here is a great way to start your exercise routine at home. Link to purchase the Yoga Fitness Pilates Ball & Stability Base for Home Gym & Office from Amazon is located below images.

Yoga Fitness Pilates Ball & Stability Base for Home Gym & Office

Now, we all have to eat but do we really need to be eating out every day? Try to bring your lunch with you to work. Meal prep for the week. There are several great books out there to show you how to make great meals for the week so that you can save money. There are even to-go containers that are reusable. Check some of the links below. Don’t think that you have to give up eating out completely. Try a couple of days a week prepping your meals and taking them with you to work. It takes the average person 66 days to make something a habit so once you get into the swing of things and see how much you are saving from not dining out you will love yourself for it.

Here is just one of many to-go containers that are reusable that have been tested by us. 

 

Plastic Meal Containers

Today, life is busy. We are always on the go. Sometimes we just don’t have time to get everything done with our busy schedules. That includes when we are getting ready for work. Before you jump into your car to make a dash for your nearest coffee shop I want you to think about how much money you could be saving if you just make that cup of coffee at home. Don’t give yourself any excuses as to why you don’t have time to make a cup of coffee at home. Excuses are just bad decisions. There are programmable coffee makers that will brew your cup of coffee at the time you need it to and you just grab it before you head out the door. Don’t worry it can also be programmed to switch off. Here are some recommendations for coffee makers if you are interested in saving more money.

Hamilton Beach Coffee Maker

 

Keurig Coffee Maker

Lastly, I want to cover credit card interest. If you do not pay off your balance in full each month then you will have to pay interest on the balance of the items that you have purchased. This can add up and is the reason why so many people are in debt. Don’t try to live your dream of having everything you want by swiping your credit cards. The dream should be not having debt and feeling financially free and stable.

We hope that this post helps you in your quest to becoming debt free. Please comment below if you have any suggestions or feedback and if this post helped you please share with others. To recap we have listed everything that was discussed in this post below.

Reasons Why You are Still in Debt: 

  • Impulse Buying
  • Buying online without comparison shopping
  • Being disorganized
  • Expensive Plans – Cellphone, Internet, Cable etc…
  • Not using coupons (come on that is money back in your pocket)
  • Not taking advantage of employer’s 401K plan (company match)
  • ATM Fees – If you need to withdraw money from the ATM then do it for free. Either go to your bank and withdrawal money or have a bank account that gives you free ATM fees. Charles Schwab is a great bank that puts the money back into your account if you need to withdraw money from an ATM.
  • Gym Memberships – Check the contract. If you do not cancel the membership during their trial period they can still charge you and there could be up to a 60 day cancelation period.
  • Dining Out – Trying cooking at home than spending money out
  • Buying brand name over generic brands
  • Spending money on that cup of coffee every morning or throughout the day
  • Credit card monthly interest. If you do not pay your credit card off each money then you will be paying interest on the balance that you owe on that credit card.

 

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