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It is all too easy to sink deeper and deeper into the proverbial ‘debt trap’ thanks to uncontrolled spending, however, all is not lost as given time as well as life style changes it ‘is’ quite possible to take control of your runaway financial obligations and live a (relatively speaking) debt free life.

But the question remains as to how to go about doing that? A reputable credit counselling service or agency may be able to help. They will both advise  as well as educate you and in other ways  help you in every way possible to make sure that you not only get out of the ‘proverbial debt trap’ but change your spending patterns to such an extent that it does not  happen ever again.

Here are a few tips that, with the active guidance and advice of your chosen  credit counsellor that would not only help take care of your problems in the short term but in the long run act as guide posts to make sure you do not repeat the same vicious cycle.

  1. Houston: We have a problem

When it comes to taking care of runaway debt, you have to look in the mirror and firmly understand that your debts did not accumulate on their own. But rather, they were a direct result of your very own spending patterns. The age old adage of “spend only what you earn yourself” does hold true to this day. Unfortunately, it’s not as easy as it looks, we all have desires and the quest to buy the latest LCD or LED 3D TV on a credit card that you know you are not in a position to afford , may well prove irresistible.

This is where financial discipline comes in, rather than taking a short cut, and using your credit card to buy that TV, it would be more productive to wait and save for it with your own money. (It just might make you feel better about yourself too)

2.     No short cuts

You must keep in mind that a credit counsellor is not a magician and once you go to him all your financial problems will vanish like they have never existed. Remember, he is first and foremost an advisor.  And ultimately, it is’ you’ who have to follow his advice for it do any good.  You may well have to forgo many a luxury before you would be out of the woods.

3.     Consult a professional before the problem even occurs

Before making a really large purchase (for example a car), it is advisable to take at least a few sessions with the credit counsellor you are most comfortable with. He or she will help you decide how much you can afford to shell out on credit and how much should be a lump sum payment, so that you don’t end up being at the beck and call of your creditors.

However, it is pertinent to note that ultimately it is ‘your’ personal responsibility to take care of your own loans. Failure to do so would hurt you more than any one else.

 

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