Most Americans carry a big ole pile of debt around month after month. Some of these Americans know exactly how it happened. Purchasing fancy televisions, comfy furniture or exciting vacations are too often causes of that debt.
This isn’t always the case. There are many people who are in debt and have never treated themselves to fancy furnishings or long vacations, but rather lived day to day, but didn’t watch their spending. Small spenders over time still end up owing large amounts of debt.
A cash advance cycle of debt is tough to escape.
It happened only once; that is all it takes to land in a cycle of cash advance debt. The choice to apply for the loan was quick, process was simple, but the aftermath was never imagined. How do you pay back a loan plus fees in two short weeks when you barely make ends meet now? Getting the loan principle paid off may take quite a while. In the meantime the interest charges must be paid at the end of each two week cycle. It is a tough cycle to break without juggling other costs or cutting back somewhere within the budget.
I read an article about an elderly couple who managed to pay off $120,000 of credit card debt. They were not sure how it happened as they lived what they called a “boring” life. There were no frills or fancy cars filling up the credit cards. What they did do was to spend more money than they needed to at the grocery store each month and felt free to pick up this and that along the way.
http://www.youtube.com/watch?v=np8JVUmpQCQ
When debt is not paid off each month or only the monthly minimum payment is made, interest payments creep in adding themselves to all the additional charges. Compare it to a slow leek. Place a bucket underneath the drip and walk away. Upon return, it may shock you as to how much water is found inside (if not already spilled over).
This couple started their freedom from debt by going to a credit counselor. It took them a year to own up to their problem and actually visit the counselor. Getting real with your finances is a process. Some people take longer than others to face the facts. The good thing is that when a person is ready, good things are sure to come.
Hard work and dedication will keep a cash advance away.
The couple overcame their debt and kept a basket of cut up credit cards on the table as a reminder. It keeps them focused on living within their income. The last thing they would want to have happen is to see debt creep back into their finances.
I know how hard it is to pay off debt with a limited income. I say, “Congratulations!” to anyone able to triumph over debt. As I work on this myself, I am changing my spending ways. I have learned to cut back and focus on the restraint needed to spend on low cost extras. I keep cash advances completely out of my budget and credit cards are used only in emergencies. It may take me a few years to come out on top, but I will proclaim victory over debt.
