Often times we are not aware of the Gold Hidden in our own backyard. We are hell bent about trying to bringing in more money rather than putting a plug into the drain that is leaking the money out of our pocket. Without putting a plug into this drain you may pump in any amount of emergency borrowings or emergency loans or short term loans or low interest rate loans, your individual situation is going to remain the same.
Take care of your Pennies and the Dollars will take care for themselves
Most of us have this mindset that we are frugal, we are smart, we are mature and that we manage our money pretty well. Let me give you an example of someone who is let us say much younger to you.
This might help you explain what I am hinting at.
Suppose we give One Dollar to a 7 year old child. This child knows that she can buy a candy with this dollar note so she will accept the dollar note and might start playing with it and after some time might even lose this dollar bill without any remorse. Exactly in a similar fashion when we get a short term quick loan or financial help we accept that help just as that 7 year old child accepted the dollar bill to buy some goodies. Due to our pre set money management habits we realize that we have as usual lost that dollar bill or consumed the short term loan and now are saddled with additional debt.
Hopefully I have been able to prove my point that the solution is not in earning more or borrowing more but looking at where the money drained. Eventually as we are grown up adults we are not Gods that we know everything. We might be a great technician at work but we still need to learn other necessities such as be an ultimate producer (built some net worth) rather than a ultimate consumer (lead a deficit lifestyle) and drain on the society.
Are these Programs Really Helping Me?
Yes these counseling programs operated by governments or Debt Consolidation programs operated by private financial institutions play a vital role without giving you more cash loans. The education offered by these programs enables more than 65% of the population in age 50 and above to get back to live within ones means by teaching a lifestyle change in prioritizing money disbursement habits.
You don’t have to swallow everything that is being taught but you shall definitely benefit from their experience of handling individuals who were under unmanageable debt. It is harder to change generation under 50 as they are hell bent upon making more money and paying off their debt rather than bring in a change in lifestyle.
More mature folks have learnt to accept that this is the maximum they can rake in month after month and therefore they must learn to manage within their means and therefore give a shot to debt counseling or debt consolidation.
A single Life Changing Event
Even high earning professionals can end up from a positive net worth to a negative net worth with a single unanticipated life changing event such as the loss of a parent, loss of a spouse, loss of a child, loss of job or change of physical location for certain unavoidable reasons.
Even these seasoned professionals need to accept financial counseling programs to get back into life style rather than letting the situation snowball and get out of control. Most of the time this kind of a unmanageable debt can subconsciously affect your performance at work and land you up with a medical depression counselor rather than a financial counselor. Choose what is right for you at an early stage.