BREAK THE CYCLE! (Tips to avoid DEBT CYCLE)
written by: Miss A 💋
Determining one's worth is a deeply personal and multifaceted endeavor that extends beyond the traditional measures of financial success. While monetary achievements certainly play a role, true worth encompasses a broad spectrum of factors that contribute to one's sense of self-value and fulfillment. In a world often driven by materialism and external validation, it's essential to take a step back and consider the various dimensions that shape our perceptions of worth.
The debt cycle in online lending apps (OLAs) often begins with a small loan that initially seems easy to repay due to its small amount. However, the real challenge begins when the due date arrives because these loans typically carry high interest rates and various fees or charges that can add to the total amount you owe. Unexpected expenses or bills may arise on your due date, resulting in your inability to pay on time and accumulating high interest on your OLA debt.
As a result, you may choose to take out a new loan from OLA to pay off the current debt, starting the cycle of borrowing from one OLA to pay another. Continuing this cycle can increase your total debt, making it harder to repay. The high interest rates and fees associated with these loans can lead to borrowers' financial downfall. This pattern can worsen, leading to a situation where debts pile up, with each accruing interest. Escaping the debt cycle in OLA requires active action and determination for your financial stability. Here are some practical tips that you may consider to escape from this system:
1. Create a realistic budget and repayment plan:
- Start by analyzing your income, expenses, and current debts. Create a realistic budget that allocates funds for basic expenses, debt repayment, and savings. A good repayment plan will help you prioritize debts with high interest rates and gradually reduce your total debt burden.
2. Seek Financial Counseling or Advice:
- Consider seeking advice from a financial counselor. They can provide personal advice on debt management, improving financial habits, and developing a strong financial plan. Many non-profit organizations and government agencies offer free or low-cost financial counseling services.
3. Explore Alternative Sources of Income:
- Look for various sources of income or financial support to increase your earnings. This may include home-based work, part-time jobs, or selling unused items. Having additional income can help you save money without relying solely on loans.
4. Negotiate with OLAs for Manageable Repayment Terms:
- Contact your OLA to discuss your financial struggles and negotiate terms for repayment. Some OLAs are willing to negotiate loan terms, such as extending the repayment period to help you pay off your debt more comfortably.
By following these tips, you can start your active plans to break free from the debt cycle in OLAs. It is important to face this situation with a clear plan, seek professional guidance if necessary, and remain determined to improve your financial situation.