It may be a dirty word but debt has indeed become a fact of life and for more and more people, it is getting messier. As per the conclusion of a new report by the Pew charitable Trusts that surveyed among different generations, 8 among 10 Americans are in debt and according to the trend among them, most often they are in a debt dilemma due to their mortgage debt. This debt deluge isn’t only related to the young generation but it is also being seen among the people who are walking towards retirement. While for some people, debt is the biggest burden but some others even view it as a necessity. Around 68% of the respondents of the survey said that they needed non-mortgage debt as it was required for them.
Americans usually have a love-hate relationship with debt and while they think that they need debt, it is not always so. Actually, they can’t live without debt. If you too are in the same debt dilemma, here are some of the best ways in which you can stay out of it.
- Protect your phone: You must be surprised to see this point as the first point but yes when there is an increase in identity theft, you should protect the little bit of money that you have accumulated in your account. Our phones usually hold incredible amount of personal information and many different financial details and hence you have to make sure that they don’t fall into the wrong hands due to your carelessness. Avoid announcing your passwords in public.
- Start having a passive income: Given the lack of job security that the Americans face, one of the wisest ways of augmenting your monthly income is to look for overall financial stability. Get a second stream of income and this can be done by launching a side-business and making it flourish. When your income falls and your debts increase, you can only raise your income by getting another source.
- Save more money: Do you have enough saved in your emergency savings? Do you have enough saved in your savings account? Would that be sufficient if you face an emergency situation? Well, if that’s not what you have done with your money, do it now. Make sure you save at least 10-12% of your income, irrespective of what your income might be.
- Take help of debt relief options: When your debts spiral out of control and you fail to get out of debt on your own, you may take help of debt relief options. How about looking for IVA debt help and advice from a trustworthy institution? You always have the opportunity to improve the terms and conditions of your debt accounts in accordance with your income.
Hence, just getting out of debt won’t be enough for you as you also have to stay out of it in the near future. While taking help of the professional debt relief options, control your expenses as much as possible to get faster results.