If you are struggling to pay your debt yet you never mind the small fees that you pay almost every day, you are making big mistakes. They could just be the reason why you pay the debt but it does not seem to reduce. Note this about such fees;
- Although they seem negligible, they add up to thousands of dollars every year
- They can easily be avoided and that money saved
- They are not difficult to monitor if you choose to
One of the ways you lose money is through higher interest rates. When the percentage is higher than normal even by a fraction, you are losing a lot of money to the lenders. The small percentages will accumulate to lots of money at the end of the year and this affects the progress at which you pay the loans. Before taking loans ask about the interest rates and the terms that govern how they are applied. Others compound the loan every day meaning that your debt grows on a daily basis. To know more about debt relief click here.
The small charges on your credit cards
One dollar or two deducted from your credit card might not seem too much to complain about. A majority of people do not even care to ask their banks about this because they consider the amounts too small. Do you, however, wonder where this money goes? Who collects it? The two dollars every day will be a huge amount of money after a year. It will be a sum that you wish to have yet you are broke. If you are going to avoid debt completely, you have to avoid such expenditures.
The small debts the pile up
You definitely know about the informal lenders who will lend you small amounts of money and require you to pay within a ridiculously short time. Such lenders enter into small agreements that make you pay heftily if you default. Although most governments regulate them and even shut them down, it is the people who need them more because they have an urge for quick money every now and then. Remember that by continuing to deal with such people, you will find yourself using all the money to pay them while ignoring the bigger loans that you have borrowed. Within no time, you find out that the loans have compounded into huge amounts and you just feel as if you cannot afford to pay.
Clearly, the small things that you overlook on a daily basis contribute a lot to your failure to save and pay off your debts. If you are tired of such a trend, you need to start budgeting for your money so that you can trace where every dollar goes. Spend only on the things you need and save the rest of your earnings to pay those you owe.
Pauline George uses her debt relief agency to help people who are stuck in debt. To know more about debt relief click here.