Financial Education and Techniques to Eliminate Debts

Financial Education and Techniques to Eliminate Debts

Debts are a touchy subject for many painful and reserved, but crucial towards or away from financial freedom and wealth, or at least a decent life and quieter, without anguish of having creditors and collectors that bother and torment our privacy .

The situation today is globally highly worrisome, because a large percentage of people between twenty and sixty years have solvency problems, poor money management and high debt in what is known as level finance debt bad .

Because we live in a consumer society and the actual money is not backed by any assets of value such as happened before when the currencies of the countries were backed by gold, after the administration of U.S. President Richard Nixon in the seventies, money lost its value supported by a pattern of low volatility such as gold and became an instrument of movement and trade based on public and private debt.

For this reason from that historical moment and those countries began to borrow from the local and global financial system so excessive and today all countries and their economies must pay towering debts tend to increase in relation to public expenditure rather than reduced.

Obviously the main actors in this conflict to promote are the banks, since they have specialized in marketing more and more into debt instruments to the public, starting with credit cards, which are the No. 1 headache for many people and families who have ruined their lives and credit history for many years, resulting in serious problems of coexistence that have ended relationships, friendships and led people to dementia, crimes and suicide, to name some of them .

Unfortunately the vast majority of people are not aware of the growth of debt and be compulsive shoppers, buying consumer goods continue until the situation is hopeless, and either declare bankruptcy or lose their judgment and cause damage to their life at all level, much higher than those that produced the misuse of plastic money (brand name for credit cards).

But let’s do a brief analysis of the process of borrowing ordinary people.

There is first of all a principle valid for the movement of large capital in the economy and that is to enhance and produce consumption, needs to encourage the public’s emotions. This means that making decision to buy an item or commodity is highly influenced, say in more than 90% by emotions overflowed from a buyer.

Accordingly, it is clear that no purchase buy logically. What happens is that feelings of desire or lack of an article directly motivate or convincing to anyone to buy, either with cash or credit.

For example, if your house does not have enough market and missing several items of mass consumption such as soap, toothpaste, milk, eggs, etc.., your buying decision is based on a need and therefore a sense of lack , which then causes you to buy immediately using your legally earned money or money you did not win like the credit cards today with service cash advances.

Another side of the money is buying influenced by desire, for example when you see an advertisement on TV very emotionally evocative, say a well deserved vacation to a resort with a beach paradise being announced with a great promotion in a pack of 5 days and 4 nights all inclusive. Accommodation, meals and unlimited drinks, airport transfer hotel facilities and several more.

In this case, if you have your basic needs met but not enough to pay for the holiday, feel an emotion that can be physically real and deserve to take a vacation like that, but your income and / or do not allow more current debt payments credit to bust a cost financially.

Of course to take a vacation in a great place is a great investment for the body and the spirit, but not with money you do not have and that payments can not be made.

Another case occurs for example when you go for a walk in a mall and you go with your credit card in your wallet.

Motivated (a) for an article in case you look with this new bag, jacket, shoes, and wellbeing and feel admiration and envy of your acquaintances, but even though you know you can not afford that purchase now and in the future either, as you increase the odds of a dramatic recovery, and you do it equally into debt using the card again credit, causing many problems and hurt your economy.

There is also a method used by many people fearful to relieve their debts to the financial system and is called carousel card when paying your premium card collection, use cash advances from other cards, and so on trying to pay indebted to another, until the game is not the situation SUSTAINABLE and overflows in a high debt that kills any income that can pay.

Credit cards including debt financial instruments are considered bad debt , meaning that this is a debt that you are (a) must pay within the time stipulated by the issuing bank, or they will face serious legal complications as seizures and financial by charging interest on arrears with credit bureau reports on your credit history that damage for several years.

Additionally, in some countries public debt is irresponsible and criminal law punishes with the loss of liberty or imprisonment.

The good debt is for example when someone else pays a loan for you, for example when you get a mortgage with a bank to buy a house and shares the cover a tenant.

In such a context that is the painful reality of many people and latent, it is best to seriously consider your life and know that the money mostly misused which use using debt instruments, is an extremely delicate and dangerous it can mean years of pain, sadness and economic scarcity.

Then I will give some useful recommendations for use, the rest is covered with great effectiveness in our recomended resources.

1. Do not buy consumer goods or food basket food products, toiletries and clothes using credit cards, except in very exceptional cases and with a pay real, not imaginary.

2. Never use the entire quota of credit cards. Because you end up paying more in fees and longer.

3.No load onto your wallet, credit cards, precisely to avoid exposing yourself to unnecessary temptations. And always date at least 24 hours to think about a debt on credit where overflowing emotions are not involved.

4. Do not make cash advances, except in extremely important and lesser amounts to $ 100, because this service is the most expensive debt level offered by banks.

5. If you are highly indebted but currently have a job, pay current debt to capital and make a financial plan to exit date total debt.

6. When you look at an advertisement with very suggestive advertising that awakens in you a burning desire to use, think immediately or scene brings to your mind the consequences of taking precipitous actions and pain that new debt will bring to your life in the immediate future.

7. Never make plans to go into debt cheerful, like saying “get a job or money without having it and pay this debt.”

And keep this in mind especially for recreational activities such as paid nights out, drinking, food, etc.

8. If you have a steady job and you are a disciplined person in handling money, evaluate your borrowing capacity on an actual basis that does not put you in financial straits. This means having all your needs met and not out of your basic income to pay collection accounts.

9. Never use a debt to pay another. This applies to credit cards, mortgages and other financial instruments.

10. Use credit cards to pay for goods or primarily investments or you make more money, as improvement courses, financial education or professional or business you can apply to short term or increase your knowledge and mental strength, which will result in the short, medium and long term increased economic output.

For best results in practice and expand the knowledge presented in this article about “Financial Education and Techniques to Eliminate Debts”, I invite you to know and use our:

Recommended Resource:

What Lies In Your Debt? – Click Here

This proven system makes members money while they are able to keep their home, fight off debt collectors, credit card companies, and in just about any situation, they get paid!

 

 

*Suscribe to our Free Newsletter*

 

 

Comments

2 Comentarios en Financial Education and Techniques to Eliminate Debts

  1. Moncler sale
  2. very good and cool,thank you for your sharing.

  3. Crisis Loan
  4. Hey buddy, this is a quite fascinating article…

Deja un Comentario.
Si deseas mostrar una imagen con tu Comentario, obten un gravatar!