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Debt free life is possible after spotting spending mistakes

By: Esteri

Living a debt free life is a guarantee that those creditors will never raise those red flags giving you sleepless nights, but also a ticket to a longer, healthier and wealthier life.

However, at some point in our lifetime, no matter how much we organize our finances, debts come in hardy, but if we are able to pay back after a given agreed period, then we are good debt managers.

Those people who find themselves surrounded by all sorts of creditors each claiming a share of their pay, yet finding themselves in a tight spot to honor each of their liability, then they can be said to be in debt trouble.

It is not unexpected at all of such people to feel like they are sailing in deep seas infested with deadly sharks all seeking them as the only prey.

It is for this reason that stories of people who perished in grave road accidents, mysterious deaths or abduction will never cease crossing through our ears or shining on those telecasts.

This is because victims of bad debts look for solutions in wrong places like drug and alcohol abuse, irresponsible sexual behaviors that lead to HIV infection.

In other cases, among the creditors, one or two may not wait for a legal redress to collect their pay, and instead might plan the untraceable disappearances of the aggrieving parties. Is sure does happen!

When they can not handle the stress of the obvious criticisms and of course how to clear the debts, they might get the heart diseases or even become mentally incapacitated.

In extreme cases, the descendants of such debtors trail along with them in the path of â€oepayback time”. In fact some families have suffered profound poverty after their parent or spouse passes on.

Almost before they are through with the mourning time, they then watch helplessly as those debt collectors sell what they so doubtlessly own at throw away prices.

Things that carelessly damp you right at the debt traps

Anyone can survive a debt trouble and find their way back to a debt free life, but not before discovering their careless mistakes that damped them right where the debt traps are:

Short-cut to the top

Many people who end up in unthinkable debt troubles abuse borrowing as a short-cut to the top.

What I mean is that some people apply for many loans believing that this is the quickest way to get rich.

For example someone who has a gross salary of $750, after statutory deductions like pay as you earn, pension fund, national hospital insurance fund and bereavement fund.

Also after he pays $30 monthly union contributions, his net salary is $550.

Then he spends $270 on house and personal expenses. His trouble then started when he applied for a loan of $1857 in December 2006 and latter topped it up with $3572 in September 2007.

The bank expects $166 every month till 2010 and as at may 2008, the balance was $4485.as if these two loans were not enough punch, in February 2008,he took another emergency union loan of $1430 repaying at 36% interest, as of may 2008 the amount due on the loan was $1447.

On the side, he has another company union loan of $857 which he pays monthly installment of $36.

He has a credit card balance of $657 and an agreement with the bank to repay it at the rate of $71.

Apparently, you can see that his liabilities exceed his income, leaving him with a negative salary of about $91 as a result of overburdening himself with loans.

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About the Author:
This is an original article written by Esteri Maina on DEBT SOLUTIONS Esteri Maina is an author with a great gift and full of inspiration

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