Why United states still suffer from 2009 recession?Is it because of Sub prime crisis,collapse of banks or fall in real estate prices?
I think, the basic reason is lack of discipline in personal finance due to rising debt levels.
Recently,this is a common problem all over the world.
Debt products are making a trap for individuals and organisations.
It may be of your credit cards,auto loan,home loan ,personal loan or any other debt product.
Debt management act as corner stone for attaining financial freedom in life. Apply the following 10 step plan for your personal debt management:
1. Assess your debt level and categorise it as high interest paying or high amount debts.
2.Try to change the High interest debt towards Low interest options.
3.Make a ready reference file of your debts for reducing it step by step. 4.Create an emergency fund from any source like friends or well wishers to payoff urgent debt.
5.Start to payoff small debts first.
6.Change your lifestyle and reduce unnecessary expenditure.Stop overspending by credit cards.
8.Try for additional income sources by part time second job or freelance work.
9.Prepare an action plan to start savings and invest it wisely.
10.Fix a time horizon to get out of the entire debt and pay it off by installments.
Most important: Get out of Procastination and be confident in your skills and abilities.
Personal and national debt is definitely related. The economic downturn in 2008-09 made it difficult for the companies to survive in the market. Several businesses had to give up. Those who stayed on, had to downsize so that they can exist. As a result unemployment rate increased, and consumers took on more debt than they could afford to pay. They started spending less on the consumer products, since debt pay-off became the first priority. As a result, more businesses collapsed and it continued like a vicious cycle. Thus, we can say that both personal debts and national debt is interrelated. As consumer debt rises, national economy gets hit.
ReplyDeleteThank you so much for sharing all of the good info! I am looking forward to checking out more posts!
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Nice blog. To get out of debt, you need a plan, and you need to execute that plan. Know about solutions for Tax Return in Victoria from taxezi.com.au.
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