In a world hit hard by the pandemic, affording everyday essentials is challenging enough. But saving money may be near impossible, especially for those hit hardest by debt. Pandemic debt is escapable with a consistent effort and well-thought-out plan, but repetitive self-destructive strategies will keep you financially unstable. You’ll need to keep reading to learn what mistakes you need to give up, assuming your goal is to escape pandemic debt for good.
Why do you need to escape pandemic debt?
Imagine, once more, the feeling of being financially stable and able to pay your bills every month on time. Dreaming about such a scenario will have you contemplating the benefits of having enough money to pay for what you need, but also living in comfort, enjoying the advantages of being able to save and pay bills on time forever. When you push pandemic debt aside and pursue a loan from either your bank or a friendly debt resolution company, you can escape high-interest payments and avoid late fees and, in doing so, avoid living with the burden of debt.
While the number of Americans who have debt in collections dropped during the pandemic, overwhelming financial debt was still a problem all the same. For families in a crisis, escaping this debt will create opportunities for:
- Growth in emergency savings funds
- Lower credit utilization rates
- Manageable monthly debt payments
- Extra spending for entertainment and comfort
The three things you need to give up to escape pandemic debt
According to HowStuffWorks, poor spending habits are what keep Americans trapped in debt. Take this theory a step further and you’ll see Americans making mistakes that are merely exacerbated by the pandemic. It’s important to give these mistakes up if you want to avoid being trapped in debt.
1. Unneeded subscriptions and miscellaneous services
Having a subscription to Netflix might be necessary. Maybe not if your schedule supports a basic cable style of living. But having cable with multiple streaming packages? Or, subscriptions for unlimited downloading? Together, they’ll eat away at your wallet the higher the quality of service you receive. If you can visit the library, skip the package. If you can accomplish more with only one service, try it. That’s more money to pay off mounting debt. And you barely have to make an adjustment at all.
2. Compulsive and reckless spending habits
Overeating at restaurants and buying store coffees every day will accumulate in total costs within a given month. Gambling or buying tobacco, alcohol, or drugs can also eat away at the money you have to pay your bills. Ultimately, you’re left feeling confused and lost, stuck on one poor financial decision after another. Slow down and track your spending. Know where your money is going each day of the week. Awareness is essential to paying off debt.
3. High credit card balances
If you’re carrying high credit card balances, you’ll qualify for additional cards at higher interest rates. The extra money makes it harder to pay off debts. You’ll be paying for longer and risk running those same cards up repeatedly. The process of paying off and spending keeps you from ever making real progress on your debt. Ideally, you can get a personal loan, but with high credit utilization rates, you present a risk to lenders. Keep your balances low for now and you’ll decrease the amount of debt you have overall.
Companies like Priority Plus Financial have a mission: strive to eliminate consumer pandemic debt. The goal, most importantly, is for consumers like yourself to be blessed, and above all, enjoy the benefits of financial security. While the pandemic makes paying off debt hard, if you give up these three mistakes, you’ll get to be debt-free much faster.