Debt: There’s a Difference Between the Symptoms and Cause, and It’s Misunderstood
You’re racking up interest & overdraft fees, credit card debt, and household arguments. Your symptoms are clearly indicating a financially troubling time, and you know that something needs to be done.
Maybe a debt consolidation loan would make sense? All of your unsecured debt wrapped up in a new (presumably lower) payment would certainly help matters, right?
Not if your problems stem from poor cash flow, bad spending habits or a poor understanding of how to budget for your household. In that case, that debt consolidation loan might not fix anything at all. In fact, that temporary relief in your monthly bills may even cause you to go furtherinto debt if you haven’t changed any of the bad habits that caused your problems.
Often, when people realize they can no longer ignore it and they have to deal with their debt, they want to solve the problem in the fastest way possible — which usually means going straight for the symptoms. But, if the causes go unaddressed, no matter how well you’re treating those symptoms, you’ll almost always end up back on the hamster wheel that banks love most.
The key to getting out of debt is dealing with the underlying issues — the root cause, rather than simply treating the symptoms. The difference between the two is huge: Fixing the cause will keep you in the clear and out of the red for the long term, while scrambling to wipe away your symptoms is only a temporary solution — not an actual “fix.”
Credit card debt could be the result of uncontrolled spending, which is the result of a deeper issue like loneliness, depression, fear, jealousy, low self-esteem, or other stress. Identifying and dealing with the real pain is the only way to progress. Student loan debt or a home-equity line might be something totally different, but it still needs to be paid off.
As human beings, we’ll constantly stress and worry about things. When it comes to your finances, you need, to be honest, self-aware and focused on your true priorities in order to ease your mind.
But, that’s easier said than done. A financial expert can help you not only set a plan, but do what it takes to actually stick to it and see improvement. Turning to an expert for financial advice is not quite like seeing a therapist, but it can really add a sense of clarity, accountability, and truth to your financial mindset and habits. And the results are dramatic!
If you’d like some help getting to the root of your debt and making strides in the right direction, request a complimentary consultation with a Household CFO today!
The article is reprinted by permission from LevantoFiinancial