Simple Mistakes You’re Making While Paying Off Debt
August 30, 2021 | Emma Frost
While we applaud you for paying off debt, you may not be aware of the mistakes you’re making while doing so. From unconscious spending to staying quiet about what you owe, simple mistakes abound and get in the way of your financial freedom.
Here are the 6 biggest, yet simplest, mistakes you may be making while paying off debt. We start by talking about how you handle your money. Whether you are just starting out with your debt, or you are finding yourself buried in debt, these are mistakes you should definitely avoid.
Avoid These Six Mistakes While You Are Paying Off Debt
1. Ignoring Your Budget
A person paying off debt needs a budget. Without one, it’s like one person trying to bail out a boat with 10 holes – pointless.
A budget is how you will know what cash is coming in, going out, and shaving down your debt. Without keeping track of the numbers, you might as well be crossing your fingers and hoping your debt goes away.
When you ignore your budget, you’re also ignoring the chance to save and establish an emergency fund. If you do this, guess what happens the next time an emergency occurs? More debt. Set up your budget; if not, you set yourself up for failure.
2. Enjoying Extra Cash
Perhaps you can skip mistake #1 because you’re loyal to your budget. What happens, though, if you suddenly come into more money that month than what you were anticipating? Do you add it into your budget, or use it as extra spending cash?
One of the biggest simple mistakes you could do is the latter. The extra cash you earn or receive should be applied directly to paying off debt. Think of it as an investment now to bring about financial freedom sooner in the future.
3. Adding On More Debt
If you don’t have an emergency fund, you run the risk of accumulating more debt should an emergency occur. That’s not the only mistake related to adding on more debt.
Paying high-interest rates, opening up additional lines of credit, and falling behind on your monthly bills are small mistakes that could cost you big time.
Prioritize urgent bills, especially those which host high-interest rates, like credit cards. If you have the opportunity, find out about refinancing mortgages or student loans to see if you can lower your interest rates today.
4. Not Asking For Advice
Nobody enjoys talking about debt, but everyone enjoys paying off debt and eliminating it completely. One of the best ways to do so is through accountability and sound advice.
Find someone you can trust who has a stable financial life. Share your plan of how you’ll get out of debt, or ask them for advice on how to create a plan in the first place. Look for information in books, blogs, and articles. Vet your sources and learn from the professionals.
5. Sticking To Extremes
Paying off debt is a grueling task, but one that should also be applauded. You won’t get very far if you feel like you need to sacrifice everything good in your life to pay your debt. You also won’t get far if you don’t take paying it off seriously.
The key is to find the middle between both extremes. Allocate yourself a bit of fun spending money per month to ensure you still get to enjoy some of your favorite things; just make sure your favorite things aren’t expensive, unnecessary wants.
6. Ignoring Title Loan Options
The last simple mistake when paying off debt is ignoring title loans. Fast Auto Loans, Inc. offers title loans from $200-$15,000 in around thirty minutes. A title loan should be used for emergencies like housing or vehicle repairs, medical problems, unforeseen travel expenses, or paying a late utility bill.
To obtain fast cash title loans from Fast Auto Loans, Inc., you’ll need a car with a lien-free title in your name, a government-issued ID, and a vehicle. Then just fill out our online form and a knowledgeable representative will either meet you at your home or at the nearest auto title loans near me to inspect your vehicle.
After the assessment and approval, you’ll be able to receive your title loan that same day. You can also continue to keep your vehicle for personal use. All credit histories are welcome to inquire and employment is not needed to qualify.
Remember These Six Mistakes To Avoid Them
Paying off debt can be quite a burden, but avoiding these simple mistakes can help you out. And getting a title loan from Fast Auto Loans can help even more to lessen the load. By avoiding our 6 big, simple mistakes above, you’ll be leaps and bounds closer to your own financial independence. Fill out our online form to get started on our simple process today!