Personal Spending Trends Influence Managing Monthly Repayments Of Debts

By arya

It does not need any further explanation that the spending habits of an individual will influence his or her financial health and situation. The more impulsive a person is in buying things, more will be the use of credit cards and thereby incurring more debts. This will lead to a situation when there will be multiple credit debts of high value as these carry the highest rates of interest.

Such people with impulsive buying habits often find them in dire situations with unmanageable debts. They look for desperate measures and ways to come out of it by taking on a debt consolidation loan and consulting with a debt counselor.

However, most people do not seem to understand and consider this obvious fact that personal spending influences the financial situation they will be in the end. This is because they do not know the nuances of personal finance, its management and spending habits and its effects on debt and finance management.

Spending and income

No matter how amazing and unbelievable it may seem to you, it is a fact that personal spending rises as income slips. There are lots of statistical figures available to corroborate this fact.

According to the recent study report of Bureau of Economic Analysis it is found that in the US alone:

  • Personal income fell to $7.3 billionor by 0.1 percentin August from $13.028 trillion in the previous month and
  • At the same time, the personal consumption expenditures rose to $22.7 billion or by 0.2 percent.

The obvious inference is that the Americans are spending more and earning less. This is the situation in almost all the countries in the world which is having a drastic effect in the financial status of an individual of any nations. They are using their credit cards more and are eventually finding them in an increased level of credit card debt.

Therefore, if you find yourself in similar condition when you are juggling more credit card debts these days just because your income is not stretched very farthen there are two things that you can deduce:

  • On is that it is your spending habits that has led you to such a situation and
  • he other is that you are not alone out there.

To give you some sort of consolation, which will in no way affect your financial situation mind you, you can go through the recent survey from Absolute Strategy Research. They found that:

  • 45% of the people polled felt that their level of debt is much more as compared to their income and
  • 23% of the people faced difficulty in making the monthly payments for their debts.

Consoling fact as it may be, there is no time to relax. You must find the right debt solutions soon so that you do not end up filing for bankruptcy and damage your credit report for at least seven long years.

Debt reduction strategy

Sifting through different websites to find a way to get relief from your debts you may come across reliable sites such as and others that will provide you with enough and useful support during your such troubled times. You will see that there is no need to settle for having lots of credit card debt and sulk in silence. On the contrary, there are lots of useful and effective ways in which you can reduce your debts and even pay it off completely over time with diligence and high level of commitment.

When you follow the right debt reduction strategy, you can put an end to your money problems before matters go out of your control. To make sure that you select the right debt reduction strategy follow these steps:

  • First, get help from professionals for your debt management if necessary. Look for a reliable and reputable nonprofit debt counseling agency that has enough experience and will help you to learn the ways in which you can manage your money better.
  • Second, you should design a comprehensive debt counseling plan with or without the help of a professional and follow it diligently. This plan should include all necessary information regarding your monthly budget and prioritizing your debts according to the rate of interest to know which debts to pay off first.

Make sure that you do not workwith debt a counselor who asks for a lot of fees or make tall promises that are too good to be true.

Ways debt consolidation will work for you

Designing a proper dent pay off plan you may be suggested by the expert debt counselor to take out a debt consolidation loan. When done, you may think that taking on another loan, this time of a bigger amount, is unreasonable and will make situation even worse. However, the fact that this loan will carry a much lower rate of interest and will combine all your debts into one will prove it just the opposite.
It will enable you to know the exact amount that you owe, the clear picture of your financial future and the ways in which you can attain financial sovereignty.

Most importantly, sticking on to your debt pay off plan will help you to restrict your personal spending within your income and available resources and thereby influence your debt situation, as mentioned right in the beginning of this article.

Debt consolidation loan options

In order to manage your monthly payments, the best way is to consolidate your debts. There are different such available options and some financial institutions will even provide you with enough support to get your finance back on track. The options include:

  • Personal loans
  • Overdrafts and
  • Balance transfers to low or interestfree credit cards if it is credit card debt you want to deal with.

If you require more money to borrow you may consider a secured loan against a property that you own such as your car or even your house. These carry the lowest rates of interest but there is a risk of losing your possession given as collateral in case you do not meet with the repayments.