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Financial issues faced by the Americans and debt elimination tips

There are quite a few debt and finance related issues which are faced by the people in the US. Credit card debt and student debt and loan problem is yet another very common issue, which are being faced by the Americans. Another issue which is of high concern is low income or no job. After the recession in 2007, most of the people lost jobs. As a result, their affordability lowered too. If you consider what the counseling psychology student Karen mentioned “I am taking out the maximum amount of loans and still working two jobs to cover the bills,” you will easily understand the financial situation that most of the people are in.

The debt issue of the Americans

Karen goes on to say that”I feel shame and anxiety any time I think about money.” That is what most of the Americans feel. Most are depressed and always are left with little or no money at the end of the month. So, how can you go on to eliminate debt?

  1. You will have to take control of your finances – If you want to eliminate debt, you will have to make sure that you avoid incurring further debts. Therefore, you will have to take control over your finances. Otherwise, it may never be possible for you to get out of debt ever in your life. It is your debt and your finances. So, you are the one who can get rid of the problems all by yourself. For, you would know where the actual problem lies.
  2. Be true to yourself – You will have to be true to yourself. For example, budgeting helps keep track of your finances. However, while budgeting if you let in some gaps, it may never be possible to solve the debt and any of the other forms of financial issues.

 

  1. Follow a disciplined and frugal life – The best way to pay down debts and banish it completely from your life is, lowering the expenses as much as possible. Frugality helps in achieving this. So, other than following a budget, you can try leading a frugal life. This helps save up more than what you usually do.

 

  1. Avoid credit cards – Avoid credit card usage as much as possible. Credit cards easily lead to debt and it becomes hard to get rid of credit card debt. So, it’s better to avoid using the same. Keep it aside for emergencies.

In addition to the above, you will be required to try and avoid taking out too much of the student loans. You need to know that there are various other options through which you can obtain money, for financing your education. Find out if you are eligible for grants or scholarships. These are gift money and you need not pay these back.

 

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