Personal Lending Group Reviews

Personal Lending Group Reviews - Personal Lending Group Helps You Get out of Debt

A debt consolidation loan is a great way to combine your debtswith multiple creditors into one monthly payment at a lower interest rate than what you’re now paying.

Simple, right? It can be, as long as you can learn to avoid accumulating new debt while you’re making your monthly consolidation loan payments. About 78 percent of people who take out consolidation loans for their credit card debt end up allowing the debt to grow back because they don’t learn new spending habits, consumer advocate Dave Ramsey has said.

Here are five ways to develop better spending habits and avoid new debt after you have consolidated:

1. Set a budget and stick to it – The first key to avoiding more debt is to create a monthly budget on how you want to spend your money. This will let you see in black and white whether your spending is exceeding your income. What are your priorities? Being able to eat out twice a week? Then find ways to cut your spending elsewhere to compensate for that. Once you have your budget laid out, stick to it. For example, if you’ve budgeted $100 for clothing, only take $100 in cash to the mall and don’t use any debit or credit cards. Hit the clearance racks. Personal Lending Group Reviews can be a lot of fun stretching your dollar further!

2. Avoid impulse spending – Before you make a purchase on something that’s not a matter of life and death, take a deep breath. Ask yourself whether it’s something you really need. Would buying it fit in with the values you hold? How would making that purchase affect goals you’ve set to eliminate your debt and create some savings for the future? Most importantly, ask yourself whether you are under a lot of stress. Too often we buy things we don’t need as a way to feel we are in more control, or because it just feels good. But will it later when you’re dealing with the financial stress the purchase has contributed to?

3. Don’t auto-pay – The convenience offered by setting up automatic payments for monthly expenses, such as utility bills, can be tempting as you’re looking to gain control of your finances. But it does two things that are counter-productive. It separates you from your spending, so you have no way of knowing what you’re spending each month, and you could miss billing errors. Also, automatic bills can hit your checking account when it doesn’t contain enough money to pay them, resulting in costly overdraft fees.

4. Set something aside – Most consumer advocates recommend keeping some cash in reserve – three months of living expenses for a dual-income family, six months for a single – to prepare for emergency expenses that come up so you don’t have to incur more credit card debt. Even if you can’t afford to set aside that much, anything is better than nothing, even if it’s only a few hundred dollars.

5. Make more – It might sound simple, but many people refuse to do it. If you’re having trouble getting out of a tough financial situation, take a second part-time job. If you’re bothered by the thought of spending less time with your family, that’s certainly understandable. But if you look at that second job as something that is only temporary, you’ll see that eliminating your debt is a better decision for your family in the long run.