Wednesday, October 9, 2013

10 Causes of Debt


10 Causes of Debt

Cause #1: Reduced Income But Same Expenses


How do we get into debt?  There are 10 Causes of Debt in which I will discuss throughout this Debt campaign.  We as people tend to do so many things to get us into debt and the majority of the things we do, we don’t even realize that we are doing them.  Some things we have control over and some things we don’t.  The lesson to be learned is to control things we can and to be prepared for the things we have no control over.  Over the next ten newsletters I will discuss them one by one so you can get a good idea on how to combat debt in your lives and your family’s lives.

 

First Cause of Debt: Reduce Income but Same Expenses

There are many circumstances in life where we lose some or all of our income.  May it be getting laid off from work, illness, paycuts, or having to take a less paying job.  These are things you have no control over, but when these things happen we have to adjust our lifestyle.  We can no longer drive the most expensive car or live in the most expensive house.  It is hard for people to let these things go and it is totally understandable.  We get accustomed to the good things when we have worked so hard to get them.  This is the hardest thing to do when it comes to adjusting to a reduced income lifestyle.

The first thing that needs to be done is to take into account all the things that are extras.  What I mean by extras is those things that you can live without and are not critical to living.  Some of things may be to sell your car for a less expensive one.  If you can no longer afford cable or the big cell phone bill (which many of us have) and find a lower plan that will fit your budget.  Cut back recreational activities.  Now we all understand that we have to be able to enjoy life, but maybe instead of every weekend maybe just once a month.  Find less expensive things you can do at home with your children or go to your local government’s websites and find out what recreational activities they have for free.  Many cities post these on their websites so take full advantage of that.

Once you cut back on many of the things you can live without and are not critical for your survival, then it’s time to take a look at your finances again.  Hopefully by then you have adjusted enough and your mortgage or your rent is not over shadowing you like the Creature Within.  All things are possible as long as you have a plan.

Dave Ramsey Giveaway

Many of these lessons are taught by Dave Ramsey in his best selling book “The Total Money Makeover”.  These lessons in this book will teach you how to be prepared.

Dave Ramsey’s lesson: “Design a sure-fire plan for paying off all debt---meaning cars, houses, everything.  Recognize the 10 most dangerous money myths (these will kill you).  Secure a big, fat nest egg for emergencies and retirement!”  These are just some of the things you will learn in this book.  It has changed the lives of millions including myself.
 
About the Author:

Hello.  My name is Andre Hardy and I am part of a “Home Business” that is an affiliate of Dave Ramsey and we preach being debt free as well as provide you with an engine to make extra money without leaving your primary job.  We are offering this book for free (The Total Money Makeover) to anyone that joins our team and start their journey to being debt free.  Click the link below and see what we have to offer.


 

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