Smartway To Avoid Poor Finance Management

Smartway To Avoid Poor Finance Management 5.00/5 (100.00%) 1 vote

According to a research, a huge percentage of divorces take place because of accusations and quarrels about money. If you are living in nestegga family, you have to take care of the needs of all your family members, but at the same time, save enough to have money for your emergency needs. Not only emergencies, you need to save also for your future, for your retirement, for the education and marriage of your children and other things in life like buying a new car, a bigger home or an international trip to your desired destination.

If your money management is not strong enough to save a good amount of money in your account every year, then you need to give some serious consideration to it. You may not realize this now as you are earning money and spending it on your expenses. You may be earning less and spending more, but you are at ease because you still have your credit card limit. But you should realize that you may not be able to pay off your credit card bills later on and in those circumstances, you will become highly indebted. Most of the credit card bills come with high rates of interest which means that you will need to take another loan to pay off this bill.

If you do not pay off your loans in time or even miss a single repayment, you may spoil your credit score which may lead to a bad name on your financial position. Money lenders will refrain from giving you more loans and even if they do so, they will charge you a very high rate of interest.

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Taking one loan to pay off the other may seem to be a vicious circle and you may feel that you are not coming out of it in any way. In order to pay off your debts, you may even get a home equity loan and in the event of failure to pay it off, you may even become homeless by getting your home foreclosed.

Apart from all these financial losses, you will also be forced to face a lot of social rejection. Your relatives and friends will stop trusting you and getting a loan will become a hard thing to do for you. The worst thing that can happen to you is bankruptcy which will be your last resort when you have damaged all your credit score and bank accounts.

Therefore, it is necessary to have an effective money management plan so that you save some money every month and do not need to face all these devastating consequences.