The way the economic climate is at the moment, getting yourself out of a debt hole is a bit of a task but can be achieved with a concerted approach. Now, if you’re Single, digging yourself out of that hole can be a little bit more difficult, however, definitely achieveable. Here is SHI Symbol has received some good advice from Shaun Connell who has an excellent background in in assisting people with financial advice, saving money and debt consolidation.
Getting out of debt with a single income is very possible, but like most important things in life it requires discipline.
Many singles simply have never acquired discipline when it comes to money and handling debt. This happens for many reasons. Some attribute it to the grandparent generation of the 1950’s who had a fairly good boom time economically following World War II. They wanted to provide all they could to their loved ones and their children very much benefited from this by having lots of advantages such as toys, education and cars.
The downside is that they were given things rather the having to earn them as the parents of that time did. When they had children and later grandchildren who are young adults today, something happened along the way to obliterate the time tested “work ethic” as it was replaced by the “me” generation grab for all the goodies they wanted. One thing they also “got” was a build-up of debt. This may have originated from good causes such as student loans, or detrimental financial tools like credit cards.
For the single person with one income who wants to succeed at getting out of debt so they can really enjoy life, there are solutions.
1. The first concept that is essential to grasp is that a person cannot get out of debt if they are spending more than the income they are receiving. Using credit cards and payday loans to get from one pay period to the next or to cover unexpected expenses and income shortfalls just does not work. Put it into the “bad idea” column.
2. The second concept to know is that interest works for you if you put your money into an interest earning account; it works against you if you are using credit. Just look at any of the new credit card statements coming out since the new U.S. legislation for credit cards. They tell you exactly how long it will take to repay your charges if you only pay the minimum amounts and how much you will be paying. You could be paying multiple times for the same charged item and paying for it over many years. Just think – had you paid cash for that item, there would be no bill and you could save that same extra money and have bank interest working for you at the same time. Compound interest is an amazing money maker if it is working FOR you.
3. The third concept is that it is essential that you know exactly what you owe and where every penny of your money is going each month. Make up a budget. They are simple and are a map for financial success. Stick to the budget like glue!
4. If you try hard and determine to pay off your debt quickly, you will be short of cash for a short while but long on money and happiness once those debts are cleared. Did you know that overweight can be related to being overspent? Depressing situation!
5. Find more income and pay the bills off a.s.a.p. Cut expenses at the same time. This will hurt for awhile and if you are addicted to spending it will be very difficult. Succeeding at this step will bring huge rewards quickly, however.
Being single has its rewards. You can control everything! Taking care of debt and knowing how to use money is a very admirable trait that others will appreciate, including your dates. Remember, cash is more impressive than plastic on a date. Understand that couples may have two incomes but they also have double the opportunity to be in debt. Learn to save for your pleasures and have the discipline to be patient while you are saving for them.
There is only one way to get out of the debt trap: find more income and pay off the bills while you stop spending carelessly. Get a plan and stick to it like super glue. You can learn to handle single income money and get out of debt!