Cycle of debt: keeping yourself out
How does one keep out of debt and the debt cycle? That isn’t as hard as a question to answer as some might think. The objective here is to know what to do and what not to do to help prevent you from even starting the frustrating downward spiral.
Preventing ourselves from being taken by the by the cycle of debt, we should start by explaining the situation of paying credit off with even more credit. This spiral starts by people abusing their credit cards then having to acquire another credit card to pay off the first credit card, which then leads to yet another credit card and so on.
Now that that is explained, let’s think of the ways that can keep someone out of it. Here are a few problems that start the spinning web of debt.
-Misunderstanding of financial terms
-Not saving enough
-Poor money management
These are some common reasons for finding yourself in a debt cycle, after which people resort to the easiest and closest comfort.
So what is the easiest way to keep you out of debt? Well don’t spend money you don’t have and budget yourself.