Now that I have ranted about the current state of the economy, let's talk about how to escape debt poverty. Well, maybe I should define debt poverty first. Debt poverty is the economic condition experienced by many Americans in which their total debt payment leaves them with little or nothing left over for basic expenses. This results in the use of more debt to finance basic expenses causing a debt spiral leading to what feels like imprisonment.
Can you feel the frustration? Is this a description of your situation? Don't despair, there is hope. There are no easy fixes, but there is a way of escape. If you recognize that you are in need of help to get out of the mess you are in, you have begun to break the chains that bind you.
Once you have the knot in your stomach that all is not peachy creamy, then you should take an account of what your real situation is. It's time to face your dilemma head on. Pull out all of your debt statements and add up the total amount of debt. Then, find out how much you pay each month in debt payments. Hopefully, once you see this, you will get motivated to make changes.
You need to include your car payment(s), credit card payment(s), school loan payment(s), mortgage payment(s), and any other payments you make that are credit related. Be sure that you leave nothing out. It is important to be totally honest with yourself and/or with your spouse, and visa versa. Nothing is more frustrating and damaging to recovering from your debt addiction than not being honest.
You must complete this exercise before you can escape debt poverty. Ignorance of one's economic status is a sure way to financial ruin. Deliverance from the tyranny of debt begins with taking responsibility for your financial actions. This may be one of the toughest parts of escaping debt poverty. Those who face the problem will win; those that do not won't.
Once you have the knot in your stomach that all is not peachy creamy, then you should take an account of what your real situation is. It's time to face your dilemma head on. Pull out all of your debt statements and add up the total amount of debt. Then, find out how much you pay each month in debt payments. Hopefully, once you see this, you will get motivated to make changes.
You need to include your car payment(s), credit card payment(s), school loan payment(s), mortgage payment(s), and any other payments you make that are credit related. Be sure that you leave nothing out. It is important to be totally honest with yourself and/or with your spouse, and visa versa. Nothing is more frustrating and damaging to recovering from your debt addiction than not being honest.
You must complete this exercise before you can escape debt poverty. Ignorance of one's economic status is a sure way to financial ruin. Deliverance from the tyranny of debt begins with taking responsibility for your financial actions. This may be one of the toughest parts of escaping debt poverty. Those who face the problem will win; those that do not won't.
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