Ask a Victoria 4 Pillars Consultant: Habits to Avoid When in Deep Debt

Getting in debt is a piece of cake for many. It’s getting out of it, however, which is the trickiest part. Unfortunately, not a lot of people are well versed in sound personal financial management, as they still tend to commit missteps that worsen their debt problems even more. Check out some of the worst things to do when one owes money, all of which an experienced Victoria 4 Pillars debt relief consultant like Blair Greenwood would always advise against:

Nothing – Probably the most obvious of all, you cannot hope to be rid of financial problems by simply sticking your head in the sand and hoping it will all go away. Once you get busy with pretending nothing is wrong, you’re at great risk of being pursued by even more determined creditors, who uses the downtime you created to plan their next course of action.

Taking on New Debt to Pay Off Old Debt – It’s been said once that a wrong can never be made right by another wrong, and that statement rings true when paying off debt. Instead of borrowing from person X to pay person Y just to make sure your payments are timely, it is much better to reach out to the creditors and ask for some sort of temporary relief or a manageable payment plan to keep your already unruly finances in check.

Co-Signing a Loan – Co-signing someone else’s debt is almost equal to taking on the debt yourself. The trouble lies in this kind of situation: once the main borrower fails to make payments, you (as the co-signee) will be burdened with shouldering the bill instead. In addition, your credit rating can suffer significant damage (and in worse cases, even land you time in Court).

Gambling or Trusting the Lottery – It’s not uncommon to put your trust on instant sources of money (i.e. the lottery, casinos). This thought, however, can only provide you a small, temporary sense of hope. In the end, the odds of winning the lottery are extremely slim: 1 in 12,271,512 chances to be exact. To assure yourself of even a 50% chance of winning, you’ll have to buy over eight million different tickets.

Keep Spending – You’re already in debt with creditors breathing down your neck, so why even bother spending more? By keeping your old spending habits that got you deep in debt in the first place, you’re doing yourself no favors at all.

Being deep in debt is already troublesome as it is. Start freeing yourself today by avoiding the bad habits above, working with a debt relief consultant, and reading numerous 4 Pillars reviews to know the best courses of action to undertake.

(Source: 4 Dumbest Things To Do If You’re Deep In Debt, DailyFinance.com)