Things To Consider About Debt

Debts; The Good, the Bad, and the Ugly

I’d be lying if I said that debt is always a bad thing. Well, in a sense that it will always have to be paid back, it is. But there are other things to consider.

Recent studies have showed that debt and credit cards can have positive effects as well. One of them is the feeling of empowerment. The studies showed that carrying a debt raised people’s self-esteem, both among young adults and adults. However, it can be considered partly positive only and only then, when the acknowledgement of negatively felt debt and credit card effects are 100% admitted. Only this way you can actually be responsible with all of your debts and never let them get out of hand.

As a home owner (current or future) you can probably also understand the positive side of debt. If you had to pay $100k or $500k upfront for your new home, only a few of us would actually own our houses and apartments. Even the ownership of a new car – could you afford to pay $20k upfront?

These are just couple of things the world of debt has made possible. And we could also add that certain credit cards offer cash backs, free travel insurance and other promotions that may make our lives just a bit easier. So by the end of the day, debt is not 100% a bad thing.

However, everything’s good until a certain point. While getting a home loan or car lease or a credit card packed with bonuses isn’t necessarily a bad thing, we have all seen what’s happening in the world right now and we have all seen the results of borrowing too much. The truth is that not just someone from our neighborhood is borrowing too much, actually it’s 2/3 of our neighborhood.

When is a debt too big? That’s easy. The debt is too big if you can’t afford to pay the monthly payments anymore. In my humble opinion, if you have a job now that pays for all the monthly payments without any problem, then it’s good. Now you lose your job and you have no income anymore.

Imagine that happens. Do you have enough emergency-savings that will keep you alive and allow you to keep paying back your debts for at least the next 6 months? Even if you don’t get a job within that time? I have a feeling that most people don’t have that emergency fund. And if you don’t have that, this means your debt is too big already now. It’s time to get out of debt with the help of Incharge Debt Solutions. It’s a 14-year-old non-profit company and they have helped thousands of individuals to solve their financial problems.

Incharge Debt Solutions in short

They have been in business for over 14 years.
They have helped thousands of people struggling with debt.
They have A+ rating by the Better Business Bureau.
They are members of and adhere to the professional standards of the National Foundation for Credit Counseling (NFCC).
They are accredited by the Council on Accreditation (COA).
They are a HUD-approved housing counseling agency.

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