Debt Review - PowerPoint PPT Presentation

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Debt Review

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Debt counseling, also known as credit counseling, is designed to help people restructure their finances and debts so they can pay their obligations and, if possible, avoid bankruptcy. – PowerPoint PPT presentation

Number of Views:43
Updated: 23 August 2014
Slides: 8
Provided by: payplansolutions
Category: Other

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Transcript and Presenter's Notes

Title: Debt Review


1
Common Reasons People Get into Debt
  • Unaffordable decisions, lifestyles and
    turning a blind eye to financial problems are all
    reasons to slide into debt. Sometimes can come
    unexpectedly and turn for the worst expensive
    bills, because we live in the culture where
    things are costly and borrowing is easy. When
    debt became out of control, people with that
    problem feeling powerless and scared for the
    future.

2
Getting into Debt
  •   Borrowing money is a standard way to make big
    life changes such as buying a house, getting a
    car or starting a new business. If someone with a
    steady income takes a loan to pay for something,
    then also do know that they will be able to pay
    it off within a certain time period. 

3
Getting into bad habits
  • Getting to alcohol, drugs, gambling, sex and
    shopping can all lead to debts. Even if they know
    it is bad for them, they will find a way to do it
    so they can feel pleasure and aliveness. And they
    can quickly lead to serious money problems.

4
Trying to get fake lifestyle
  •  It is common to feel that, we must have the
    right clothing, the right hair and so on. But
    very few of us can afford these lifestyles, which
    we really want. Sometimes we can kid ourselves
    for a while to spend money we don't have.

5
Lead to bad decision
  • Sometimes because of impatience, lack of
    research and misunderstanding, we can lead to a
    bad decision that results in debt. Such as
    getting on the property ladder at the wrong time,
    taking bad investment advice and
    taking payday loans etc.

6
Spend Blindly
  • Some people used their credit cards to spend
    blindly while avoiding their bank balances so
    they can quickly lead to huge bank charges that
    add up over time and result in serious debt.

7
Live an unplanned life
  • One very common reason for uncontrollable debt
    is neglect (Idea of budgeting). Keeping receipts
    and building accounting spreadsheets is enough to
    make them run for the hills. We can't plan for
    each thing that happens in our life. Those
    unplanned life changes can cost a lot of money.
    Such as if one earner dies, the rest of the
    family might struggle to survive on a reduced
    income, because of divorce dividing of two
    incomes often results in debt and fires, flood or
    earthquakes etc.
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