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Debt Can Delay Your Destiny in 2021

April 11, 2021 By Diana Myrie 0
man thinking about his debt
"Bad debt is akin to slavery"

Debt continues to define who we are economically as a people. The more debt that we take on, the more it results in us introducing obstacles to an otherwise clear pathway to experiencing true financial freedom.

I follow many groups on social media and it never ceases to amaze me the overwhelming interest that is generated when there are posts that deal with the availability of loans.

We’ve all heard about “good debt” and “bad debt” where bad debt is akin to slavery.
Your value to the financial institutions is based on good credit, which is based on your history of managing your debt. That is, paying and repaying on time, along with other considerations.

Don’t let lenders be the one to determine who you are just by looking at a balance sheet and seeing a growing liability. Who wants to be weighted down by an anchor where you are tied to your balance due, which is  compounded by added interest?

If you can no longer make the necessary payments to service your debt, the debt collector will be contracted on your behalf. This is an additional cost that you will bear. How you pay from then onward will depend on the arrangement you negotiate. You can choose to consolidate, or discuss other recommended options with your Financial Advisor.

Paying off debt is only part of the solution. It is more of a mindset that I am seeking to encourage. One where an over reliance on debt is overcome like a drug addict who becomes sober. If this is not accomplished, then it’s like a slave who secured his freedom only to find himself recaptured and resold to the highest bidder and so the cycle continues.

Being tied down by debt can be avoided by putting plans in place to avoid acting on impulse. Many financial situations, which spiral out of control, are caused by impulsive actions. An easy loan can lead to a hard life. Having cash to do with as you may is a great feeling.

A loan used to buy the latest designer handbag or sneakers may bring instant gratification but the feeling does not last. It provides a  “high” that most persons experience at some point in their lives. Then comes the low when the realization hits that the loan has to be repaid.

Ask yourself the following questions before taking on more debt:

  1. Is it worth it?
  2. Will it pay for itself?
  3. What will be impacted if I do this?
  4. How long is the pay back period?
  5. Can I still make payments if I lose my job?

Credit is good if used properly. Many people, however, have very little knowledge in this area.  They say knowledge is power but what good is it if it’s not applied? It is recommended that before making that next purchase or applying for that next loan one should seriously consider the consequences of the decision. Your future may very well depend on it!

 

To learn more useful money management tips and strategies to help you get more from your money check out my bestselling book, “Overcome Lack and Step into Abundance! Your Ultimate Guide to Financial Freedom” here: https://dianamyrie.com/distributor-list/