My friend Michael has a brother who is currently seeking the help of professional debt management organizations such as Freedom Debt Relief to help resolve his debt issues. After hours of behavioral analyses from friends and family members, they found that the root cause of his problems was the inability to keep his debts under control. The symptoms were obvious earlier on but like many people, his brother simply chose to ignore the problem at the start. When Michael realized that he and his wife have begun showing the very same symptoms like his brother, he decided that it would better to nip the problem in the bud instead of letting it grow bigger and bigger until neither of them could gain control of their finances. Basically Michael knew he had to do something to avoid having to enroll into debt management programs like his brother because it would have a huge impact on his finances as well as his life.

The number one symptom that Michael and his wife immediately spotted on their financial activities was their tendency to shop for unnecessary items. It might have started with one innocent purchase such as a high-definition TV that in by itself would have been a harmless purchase as the two of them could afford to pay the debt on their TV. But naturally, a high-definition TV should be complimented with a surround screen home theatre set so that the TV experience would be more real and life-like. Then there would be the problem of the theatre set not complimenting the sofa set in the family hall where the TV was to be placed. So the entire family hall would need a major overhaul with new furniture and, heaven forbid, new wallpapers as well. And so it goes until before either one of them realized it, they would have been so deep in debt that it would take them a whole year’s salary to pay them all off.

When they realized that they are already on the way down the same spiral, Michael and his wife immediately ceased making unnecessary purchases and started concentrating on paying off their existing debt before it gets out of control. They made sure that they stop incurring more debt in their quest to be rid of their existing debt. That included not applying for any more loans or credit cards. Michael and his wife also started saving more money by spending less than what they actually earn. Generally they made it a point to set aside at least 10% of their monthly paycheck into their savings account before they start spending any of their hard-earned money. They figured they might need the extra cash later on for emergencies such as a broken down car or medical necessities.

Michael also noticed that he and his wife both have unmonitored credit card spending habits. As he realized that this would probably contribute to a spiraling debt, he decided to cancel his credit cards and keep only two for emergencies. His wife also did the same. The two decided that it was probably time they got back to basics and started living on cash. It may sound a bit cliched but if it would help them avoid going deeper into debt they would do it and do it they did. The credit cards they decided to keep were only used to make purchases that they can pay the full balance for at the end of the month. Big purchases were avoided altogether and they only spent money on the things they needed instead of the things they wanted. Michael and his wife also learned to live on a budget and tried their best to stick to the budget as closely as they could. Of course there were instances where they might have to spend a little bit more than budgeted but they always tried to make up for it in the following month.

In the end Michael and his wife have succeeded in ensuring that they both do not end up being in more debts than they already were. They even managed to consistently pay off their existing debts such as mortgages and avoid using their credit cards whenever and wherever they can.

Author Bio: freedom debt relief

Category: Finances
Keywords: freedom debt relief