Debt cycle- What is it and what are the ways to kiss it good-bye?
You borrowed a loan recently, but you could not repay it. Then, again you borrowed another loan, to repay your first loan. Again the third one for repaying the second one. This is just not ending.
This just means that you are in a debt trap or debt cycle.
Your income is not sufficient to repay the loan.
Why is this happening?
This is going on because, you are not managing your finances efficiently. You are borrowing more than your ability to repay.
This will not happen with Pikavippikone lenders, as they will thoroughly analyze your financial status and help you choose the right package. They will give you a clear picture of your monthly installment amount with good interest rates.
There are few ways to break the debt cycle-
1. You should become a saver-
Being a spendthrift, will not help you to break the debt cycle. Avoid using credit cards or borrowing loans, just because you need money. Analyze, why do you need money and spend only, if it is neccessary.
2. Use the money what you have-
Rather than using credit cards, you should use debit cards, cash or cheques- the money you own. This can prevent the creation of new debt. Credit cards can only bring you more loans.
3.Increase your income-
If you are solely dependent on your paycheck to clear your debts, then you should choose to increase your income; as this will help clear your debts soon.
4.Your friend circle matters-
You must be friends with people who are savers. This will help you be on track.
If you have rich friends, it will have a negative impact on you. To match up with their status even will start spending aimlessly and will never be able to break the debt cycle.