Solving Debt Problems

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Unfortunately, debt can’t be permanently eliminated just by fixing the financial symptoms.

That’s why debt payoff and reorganization strategies seldom result in a permanent cure.

Permanently repairing a flat tire requires three action steps: 1. You must first identify the root cause so you can permanently fix the problem. Then you must take action by repairing the cause of the leak.

Until you do whatever is necessary to fix the root cause the tire will just flatten again and again no matter how many times you reinflate it. Once you’ve completed the first two steps, then it makes sense to reinflate the tire — not before. You must plug the holes in your budget by fixing the cause of the debt before actually pursuing financial solutions (reinflation) to pay the debt off. They mistakenly go straight to step three by hiring a debt consolidation company, or transferring balances to a HELOC or a 0% credit card, or they try a quick fix by selling assets such as a house, boat or car.

The source of the leak never got fixed so the tire just goes flat again.

The three steps below can help you identify and repair your budget leaks so that you can permanently solve your debt problems. More specifically, your debt is caused by your habits and attitudes that determine hundreds of daily financial decisions.That is why debt and credit problems are so difficult to resolve for most people.It’s a personal life problem (habits) masquerading as a financial problem (debt).DISCLOSURE: Cards from our partners are mentioned below.] Everyone knows how to solve debt and credit problems — make more and spend less.However, knowing what to do is one thing; actually getting it done is another matter.You should also try out some of these specific tips for how to curb your shopping: Each of these strategies has one objective — to plug all the habitual ways you leak money so that you never go into debt again.You must persist in plugging these leaks until you are spending less than you earn.You must change your behavior patterns that caused debt; otherwise, the problem will go away for a short time only to return later.In other words, getting out of debt is only half of the solution: staying out of debt is what you really want.They do nothing to keep you from piling on new debt in the future.You need a three-step solution that cures the underlying cause first and then treats the financial symptoms second so that you can become permanently debt free.

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