How to Stop the Debt Cycle?

the-student-debt-cycle_52b746f055f01_w450_h300In today’s world most of us have sunken in a debt cycle without even realizing it due to clever marketing tricks and technique. However, this debt cycle needs to end if we want to have any sort of success because as long as we are in the debt cycle we will spend our lives paying our debts and not excelling at all. To get out of this debt cycle ones needs to change their mindset and be more aware how of one falls in debt to avoid it. We spend money based on our desires rather than our needs and our desires have no end thus we end up in debt.

Firstly, we need to realize how we get so easily manipulated into acquiring debt. If we are offered an opportunity to owe money to someone, we would generally reject it so to counteract these big companies, corporates and banks have introduced the word credit. Using the word credit, they make us believe that spending money without thought is an ok thing to do. Whereas in reality it is nothing but debt and only causes us, harm. Another reason for acquiring debt are our own personal desires, desires which are easily manipulated into wanting more and more through clever advertising and marketing strategies. We always end up spending more than we earn or can afford.

We need to be aware of what are financial condition is. Is it good or bad? Can we manage our money properly or not? In addition, we should always avoid useless debt management strategies as they are also nothing but tricky advertisement meant only to further empty our pockets.

To begin a life free of debt, decide today that you will no longer acquire debt or fall prey to any debt acquiring strategies. Next, I want you to take a paper and pencil and write down all your expenses. Once you have done that, I want you to separate the things you need and the things you want because this will help you have a much clearer idea of how much money you actually need to be spending instead of wasting things. If your list of needs exceeds what you currently earn then start doing a little extra work on the side or maybe a part time job. If you have family, members and/or partner living with you then include them as well. Explain to them how your facing financial issues and how their contributions can help you and them!

Now all these things sound great and easy on paper but it’s one thing to sit and dream of a life free of debt, which may or may not happen through some magical miracle, and another thing to make a conscious decision and start working towards your aim. Make a decision, set a target and work towards it.

Furthermore, to help make this conscious decision, you need to understand why staying debt free is so important for you. If you ever want success, staying debt free is an important aspect of it, among others.

Start by writing down all the negatives effects staying in debt has brought you. How it has always been holding you back or in trouble one way or another. Then just next to that make a list of all the pros of staying debt free. This will help you understand better how debt has been damaging you and how much of a better life you can have without debt. Make a habit of reading those pros and cons every day or at any point you feel the temptation of acquiring debt in any form, this will help you more then you even realize. This will help you keep your mind aware and not fall for any kind of temptation.

Now I know most of you came here thinking you’re going to read about things like payment strategies or interest or some other technical stuff but knowing your finances isn’t really a problem, its living your life unconsciously that sink’s you in a debt cycle. The problem lies in failing to understand what we want and need, why we need/want something and/or do we have the money to spend on it. These aren’t huge changes or even a difficult task if you truly understand your wants and needs. Just stay more conscious of what you buy and you’ll live a happy debt free life without a problem!