There are many different programs available on the market for help with debt relief. Debt counseling, debt management, debt restructuring services, and much more. But they all have connected a big problem that makes getting out of debt a tricky task. Can you guess what that might be?
You may be thinking that it will be the fees, or inflated interest rates, or maybe it's the actual debt management companies could be yourself. Wrong. The main reason why people do not get out of debt is the fixed monthly payments that come with all debt management programs.
Earn exactly the same amount of money every month? The answer is probably no. This is not difficult to understand. For example, sales people very rarely exactly the same amount of money every month. You earn commission on the volume of trade they produce, which varies in most cases. You could be a retail assistant. In most cases, the business is seasonal, and the amount of work available is dependent on the time of year. Overtime come and go depending on company workloads. Can offer part-time jobs hours that vary widely from week to week. And so on.
Can you honestly say that you exactly the same amount of money to spend each month? I think the answer is no. People have fixed a lot of money that go every month, for example, a fixed rate mortgage, a personal loan, car finance, etc. But what about the other costs? Daily food costs, rising fuel prices, monthly phone bills, etc. It is virtually impossible the exact amount of money to spend each day, let alone every month.
One of the main reasons for people getting into debt is unexpected expenses. When people have a fixed monthly income, all of their spending budget to this. May interfere with an unexpected cost their budgets, leading to debt.
Debt counseling programs seem like a good idea, but sometimes, it can lead to big problems. Often enter these programs with good intentions, and are often happy to make the agreed payments on a monthly basis. You may be fine for a few months, then the boiler exploded. A new boiler will cost about $ 1,000. What happens to your budget when you are hit by an unexpected expense like this? That is correct....
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