Money Practices

A debt spiral may occur to an individual, organization, or a country by getting into significant debts over time. You may find yourself in this unfortunate situation, maybe because of the lack of proper financial management or poor Money Practices. 

Also, it may result when someone doesn’t understand how to use their credit cards properly. Plus, if you have debt already, you might start missing your payment plan, and the amount of late payment fees continues to pile up.

Moreover, an individual may get a loan to pay an existing debt which eventually may become difficult to pay all the borrowed money. Finally, an individual can get into many debts with multiple interest rates that may increase month after month. 

You need to know that loans aren’t bad if you understand how to manage them wisely. However, if you aren’t mindful of your dues each month, you can find yourself going down a rabbit hole of debt that’s seemingly impossible to get out of from Money Practices.

Because of the adverse effects a debt spiral might have on your financial wellness, this article outlines five financial practices to keep you from falling into a debt spiral. These Money Practices are: 

  • Get A Payday Loan or Cash Advance – Money Practices

If you have a relatively small loan due for payment and don’t have ready finances, you can opt for a low-interest short-term loan. Your creditor might have warned you of auctioning your property if the loan isn’t paid on time. 

If this is your case, you can get fast funding that you can repay at the end of the month once you receive your next salary. Therefore, you might need a cash advance or payday loan from a financial institution, such as 67 Cash Today. The good thing with this kind of loan is that it can be tailored to suit your specific needs, and most companies don’t ask where you’ll be using the funds as long as you pay them back on time. 

  • Decrease Your Expenditure 
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The amount of your expenditure should always be lower compared to your income. There are several ways you can reduce your expenses. First, you can decrease your outings. Do an introspection of unnecessary travels that you can do without. This may require a high level of self-discipline, especially if you’re used to a high-end kind of lifestyle. However, if you have to do all your travels, you can use cheaper means that won’t stretch your finances.  

Secondly, avoid all impulse buying. You can write a list of the things that you need before going to the shopping mall. Then, stick to the list of the items you want to purchase. Additionally, avoid buying luxuries. Only buy commodities that you’ll use rather than display for prestige. Finally, do your grocery shopping at a cheap grocery shop, purchase brand foods with lower prices, and use service providers that are relatively cheap to cut on your bills.  

  • Consolidate  

If you have several debts from different financial institutions, you should calculate their total value. After this, approach a financial institution to give you a consolidated loan to pay all your present debts. 

A consolidated loan aims at ensuring that you only have one loan and a single interest rate. A single interest rate ensures that you don’t suffer several penalties in case you default on any payment. The advantage of a consolidated loan is that it usually has a low interest rate and is favorable for individuals with a low credit score and may give you a suitable repayment period. 

  • Grow Your Income 

When it’s challenging to reduce your expenditure significantly, you may have to develop other ways of getting more income. If you’re formally employed, you can look for freelance jobs in your free time. Every dollar you add can make a great difference in the long run and help you get out of your debt spiral. You may not be able to count this amount of income as it may be different every year.  

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Additionally, you can sell part of your belongings that aren’t used to get money for paying a portion of your spiral debt. You can sell a piece of land, some appliances, or even jewelry. Finally, you can invest in a business, which might be one of the best options in the long run. 

  • Get Help 

If you can’t increase your income or reduce your expenditure, you may consider seeking help from debt charities. Moreover, you may consider options like Debt Management Plan (DMP), Debt Relief Order (DRO), or Individual Voluntary Arrangement (IVA), depending on which option works best for you. 

Besides this, you can approach your creditors and renegotiate your regular repayment amount to a lower amount so that you may be a bit relieved. Realistic budgets help you match your income and the amount you should be paying for your debtors.  

  • Increase Your Repayment Amount – Money Practices

Earlier in this article, you read that increasing your income by getting an extra job or investing more is a significant step to getting out of debt. If you’ve done this and your income has increased significantly, you may consider paying more in every installment so that you can finish paying your debt quickly. Therefore, you may double the amount you’re paying or increase it by half.  

  • Downsize  

Downsizing refers to changing your lifestyle. For instance, if you’re living in a rented house where you’re paying USD$2500 per month, you may consider moving into a cheaper place, maybe a home where you’ll be paying USD$1000. This means that you can use the remaining USD$1500 to pay off your debt.  

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Additionally, if your children have been studying in the top expensive schools in your country, you may consider transferring them to other schools that are within your budget. You can then use the extra finances to pay your debts.  

  • Get Help from Friends 

Every person may be having friends to whom they can turn to whenever they’re in trouble. Therefore, if your debts have become too big and disturbing, you can talk to your friends to help you raise some of the money you need. 

Dependable friends can lift you out of a pit that you would not have got yourself out of. In some instances, friends can fundraise for you to the extent that you’ll be able to pay off all your outstanding debts. When all your debts have been settled, you can comfortably start from a clean slate.  


Debts have the potential of tethering you in one place to the point of being unable to make any significant financial progress. Therefore, avoid accumulating more debts and focus on paying the debts you already have. 

You may consider increasing your income to pay off your debts quickly. Moreover, get help from a professional who can help you establish a debt management plan. 

Besides this, cutting on your expenditure can help you save money to pay your debt. Finally, once your debts have been paid off, learn the situations that put you in a debt spiral so that you can avoid them in the future.



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