Have you imagined a life without any financial need? The imagination itself will give you a wonderful feeling. What if I say about a life without any debt? It gives the same feeling. People who are in dire need of money are people who have a huge debt. We will not be able to completely blame someone for having a debt. For people who were born in a very normal family or for someone below the poverty line, debt is something that is quite common. We cannot blame them because their life situation would have led them to debt. Their main motive in life would be to get out of their debts. They even work through their life and end their life by paying back their debt. I used to wonder seeing such people and pity their situation in life and thank god for keeping me in a position to take care of myself and to even help others when there is a need.
Situations that lead to debt
There are many such situations that can lead a person to debt. People who have lots of responsibilities in the family can end up in debt and will have to repay the debt money through their life. Some people don’t plan their life properly and some people are forced to such situations. If you are in marriage age and if at all you will have to get married, you will need lots of money. In India, it is quite common to get a marriage loan. If you are getting a loan for your marriage, even the interest percentage will be very less. But the point is, you will end up in debt and you will have to be highly dependable on your job to pay your debt. There are several other genuine reasons for a person to get debt.
Could greed be a reason?
Some people have no proper planning. They might have lots of greed in their mind and accumulate lots of money and asset. In such cases, their decisions may not be quite a simple one. Out of greed, their expectations will be very high in their life. They end up accumulating so much of debt because of their greed. Some people also invest lots of money in business and end up in a loss. When people make plans with their money, the only thing that comes to their mind is the possibility where the money multiplies and gives them good returns. It is a good positive thinking but they should also think about situations where they end up losing their money and even life at times. We should not let our greed take away our intelligence.
Steps to overcome debt
People who are highly fond of doing different things will need a good amount of investments. When they are making any such investments they have to make sure that their normal life is not affected even if they lose that money. The following tips can be very useful in overcoming debt.
- Before purchasing something make sure to decide if you will need that item for sure.
- If you do not have any backup, you should not be going for a loan.
- Don’t always spend the money that you don’t really have.
- Analyze your income sources and then plan your expenditure.
- There is a difference between need and want. If you need something go for it. If you want something, think wisely before you plan to get it.
- Invest only the money you are ready to burn. If you do over investments and end up in a loss, you might have to work hard to pay your debt.
- Always look for expert advise. It is wise to think multiple times before doing something and not after doing something.
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