The world is moving fast – fast because it was only a century ago that most people could not afford a loan or could not imagine borrowing money for anything. If it was an investment, they would save until it was enough or just borrow from family. Well, the most probable reason was because the financial system was not well developed.
In today’s world, almost every other person you know about has a debt. A good number are almost going under because of the many loans they have to repay every other month. Such is the lifestyle that we have come to embrace. Rather than save, the first thing we consider is to borrow.
There are amazing tricks which you can employ in order to avoid falling into the debt trap. As a person living with a disability in Canada, you want to be sure that next month and the following month’s expenses will be catered for comfort. You really don’t want any unpleasant surprises. Not surprisingly, the steps that you can take to prevent yourself from becoming indebted to almost every other financial institution and friends are well known. You only need to live within your means and apply some extra discipline in your lifestyle.
What to do to avoid falling into the debt trap?
Live within your means – Well, it might be hard to live within your means, especially if you just found a new job and you need to furnish the house or buy a car. Still, as a rule, always live within your means and never borrow money if it is not to do something that will bring back more of it. It is also understandable to take a loan if you are faced with a real emergency.
Avoid Payday loans – These are the loans that you can take if you are broke in the middle of the month. The small loan is supposed to enable you to meet your daily expenses while you await the pay cheque. What most people don’t realize is that, these loans are extremely expensive and whenever you take this route, you drastically reduce your salary. It is not hard to find yourself always borrowing at the middle of the month once you start off with a first payday loan.
Bad credit loans – The best way to get out debt is to stop taking any more debt. It is that simple. You might find yourself in debt and often times you are defaulting. While this is pretty serious and it ultimately affects your credit score, you should not think that the solution lies out there. It is within your power to reduce the debt and get out of the debt trap. Cut on all your unnecessary expenses and where possible, even move to a cheaper house. By taking seemingly small steps, you can rest assured to avoid getting your financials in disarray.
Avoid expensive loans and shady lenders – It is understandable when you say that you need a loan to do something. However, it would be better if you struggle for a few more months than take an expensive loan that will eventually prove unaffordable. Avoid taking loans at the spur of a moment. Take time to draft your expenses and ensure that your balance sheet is healthy. Also avoid approaching or being approached by crooked lenders. If you must take a loan, ensure that it is from a credible lender who is duly registered by the government.
There are many other things that a person can do in order to avoid falling into the debt trap as well as remaining in the same. As can be seen above, self discipline and staying focused is the rule of the thumb.