From the perspective of the ratio of debt to income, the debt ratio of consumers across the country has reached a record high, accounting for a percentage of GDP. Record breaking consumers are seeking debt relief, including debt settlement, debt consolidation, debt negotiation and bankruptcy. Although this process will have a shadow from beginning to end, many consumers will eventually return to where they started. Facing the huge debt burden, monthly payment is far away. How can these consumers end up in the same predicament when they were once in debt? The three behaviors usually hurt consumers again.
I’m glad it’s over! Once the debt settlement process starts, there will be some complacency, which is natural. The collection calls are not very frequent, and only need to be paid. There will even be some money left at the end of the month. Relaxation is absolutely permissible. But it is wrong to forget the reason. The attitude of consumers is:; it’s over You can deceive yourself to believe that all this is temporary. There is no need to change all bad consumption habits. In fact, nothing is more absurd than this.
Wow! We just dodged a bullet. Let’s get together! In debt payments, consumers’ credit card payments are reduced by about 50% each month. If struggling consumers can maintain credit card settlement until debt settlement starts, reduced settlement means that consumers will have more money in their pockets after debt settlement takes effect. According to the logic, consumers should deposit extra money into savings accounts or use it for other debts, but this behavior requires the changes mentioned in the first point. On the contrary, many consumers began to consume again. If part of the consumption is to make up for lost time, the party will start and the trouble will not be far away.
What are you worried about? There is no budget, no plan to save anything, and the continuous expenditure level cannot be controlled. All issues that put consumers first in debt settlement have come into full force again. The necessary discipline and the changes that should be made have never been fully realized, and efforts and opportunities to regain a solid financial foundation have been lost.
For consumers suffering from the burden of credit card debt, debt reconciliation can provide an opportunity to rebuild and control their finances without bankruptcy. But the solution process is only half of the solution, which is temporary. Consumer behavior and consumption habits should also be changed. Otherwise, all efforts to resolve the debt will be in vain. Fortunately, the changes needed are not difficult, but require discipline and commitment. For a lifetime of financial freedom, these disciplines and commitments can play a big role.
