Long-Term Investing Strategies: Top Tips to Help Secure Your Financial Future

simple ways to hack the 52 week money challengeYou might be able to argue that putting your cash into stock with a view to making a short-term gain is gambling with your money, but putting your money into the market for a period of ten years or more is investing.

Regardless of how long you commit your cash for, there is always an element of risk to your capital of course but if you are interested in wealth creation over a period of time, you can give yourself more of a chance to witness better returns by developing some long-term investing strategies.

Here is a look at some ideas for investing that have stood the test of time and could offer you a path to a stronger financial future, including why it pays to stick to what you know, why investment delays have consequences, plus a tip not to turn down free cash when it’s offered to you.

Keep it simple

A good rule to stick to when it comes to investing is to only invest in something you truly understand.

Complicated and sophisticated financial products and opportunities might offer attractive potential returns, but if you really don’t know that much about futures, for example, it often pays to stick to what you know and can understand.

The issue is that if you are struggling to interpret the information and data you are presented with it can be challenging to make an informed decision. If you like the idea of picking stocks and investing in mutual funds, there is no reason why you can’t prosper in the long run with a more narrow approach that is based on fundamentals, rather than discovering you don’t really get complicated financial instruments.

Do your research

Reading details by OilandEnergyInvestor.com/2014/10/12-million-americans-making-fortune, for instance, is always a good way of keeping your eye on the ball and seeing what market conditions are like.

As well as scouring the various media sites for nuggets of information that you might be able to use in order to make a long-term investment play, it always pays to do your research and investigate a potential opportunity before deciding to invest your money.

No time to waste

From the moment you are born the clock is ticking and if you are going to secure a strong financial future for you and your family you need to try and get investing as soon as you possibly can in your adult life.

Far too many of us tend to drift through our twenties and maybe even a part of our thirties before getting the wake-up call that retirement and other plans need to be planned for and time is running out to get it done.

The basic principle to remember is that it is often the case that the longer your money is invested for the more chance it has to achieve its potential and grow to a sizeable sum.

You only have to look at how the investment guru Warren Buffett has fared to see how playing the long game really makes a big difference to your returns. He has always displayed extraordinary patience with the majority of his investments and this is a strategy that often delivers better rewards than trying to accumulate wealth quickly.

Even if you start investing small amounts early on in your twenties it can grow to a sizeable sum of money by the time you reach your forties and beyond, so there is no time to waste.

Why would you say no to free money?

Your government wants to encourage you to save and even if that might be because they would rather you were able to fend for yourself financially in old age than be any sort of burden to the state, it doesn’t make any sense to refuse their offers of help at this stage of your life.

What we are talking about here is the chance to get some very useful tax breaks with your 401 (k). If your employer participates in the scheme and matches your own contribution that could be a serious leg-up with your finances that you shouldn’t turn your nose up at.

You need to try and use every potential strategy possible to build your wealth and free money with a matching contribution is a no-brainer decision.

Don’t take out dividends

Dividends are a nice reward for investors but they are also the key to making more money out of the stock market than simply picking the right stocks to hold in your portfolio.

You could be forgiven for thinking that a modest 3% dividend yield is hardly going to make much of a difference to your fortunes but reinvesting those dividends rather than taking them out is a strategy that can make your portfolio grow to a much larger number over time.

If you follow some of these simple but effective investment strategies you should be able to give yourself a better chance of enjoying a more comfortable future.

Thomas Kent is a money fanatic who is always on the lookout for stock market and finance trends, news and insights. When he finds them, he loves to share them by posting on various finance and investing blogs.

Correcting a Pharmaceutical Fix: Help with Buying Medications on a Fixed Income

capsule-1079838_640With a now record number of Americans forced to scrape by on low fixed incomes, the pressures of modern-day life can be very overwhelming. House prices are continuing to rise and, paired with the cost of general living expenses like bills and food, many families find themselves with hardly any disposable money to spend each month.

It’s estimated that almost 70% of today’s Americans regularly take prescription drugs. And what comes side by side with taking prescription drugs? Having to buy them! Whilst medication is often an essential component for the day-to-day living of a huge number of people, millions of today’s adults are actually skipping medication simply because they can’t afford to buy them.

Medication saves lives, and the fact so many people are feeling forced to skip it because of money is simply unacceptable. Because of this, there are now multiple methods of help for those on low incomes who can’t afford full-price medication – you just need to do a little research and figure out what’s available in your area!

So, if you need regular prescription medication but find yourself helplessly struggling to buy them, here are some programs specifically designed to help.

Medicare drug benefit Extra Help

This Extra Help scheme has been created to contribute to prescription medication payments. But, in order to qualify for this help program, your monthly income must be lower than or equal to $1,528 if you’re single or $2,050 for couples.

However, if your income is higher than this, it’s still worth enquiring with the program as certain types of income may be an exception. You can apply for this program at any time and, if you qualify, will be able to discuss your medication list and come up with an appropriate payment solution.

Savings programs 

If your income is simply too high to qualify for the above program, there are plenty of savings programs designed not to pay for your prescriptions, but help you manage your money better.

If your income is higher than Medicare’s specified amount, you should technically be able to afford medication without help. Obviously, extenuating circumstances may affect your ability to do this but, with the help of a savings program, they’ll likely investigate how you’re spending your money and come up with methods of how you can free up some funds to pay for your prescriptions.

Often, money management is a key component when it comes to buying anything, not just medication. So, if you take advantage of this type of program and successfully free-up some of your income, you may find yourself being able to afford much more than just regular prescriptions.

Patient assistance programs

Instead of going with the brand your doctor automatically prescribes, opt for getting your medication directly from the company that makes them. If you do this, it’s likely you’ll get your prescriptions at a much cheaper price, or even free if the company offers a low-income program like described above.

Your doctor will probably have to apply for you, and will likely have to be involved throughout the entire application process. And, if you’ve already qualified for Medicare Extra Help, you may not even be allowed to apply for a patient assistance program. But, all companies will differ so it’s definitely worth asking your doctor about when the time comes for your next prescription.

If you’re on Medicare and do find you’re unable to apply, there’s no shame in admitting to still struggling with the cost if this is the case. Take a look at Nationwide Prescription Connection where you could potentially make more savings.

Safety Net providers

In certain community health centers, clinics and hospitals, pharmacies may provide your prescription at lower cost solely based on your income.

You’ll obviously have to prove your income to qualify for this discount and, if you’ve already qualified for the Medicare program, you may not have to contribute to the cost at all. To get the best idea of what’s available in your local area, go to your closest facility and simply enquire about whether they offer this Safety Net procedure or not.

Especially as we get older, prescription medication may become a regular part of life. But, if you struggle to afford the medication you need, you could run the risk of becoming seriously ill if you feel forced to stop buying. But by doing some research into the above programs, you’ll hopefully find a method of reducing the cost that suits both your income and lifestyle.

Lewis Atkinson runs a small town senior center. He loves to help others by sharing his insights and findings online. Look for his posts on various lifestyle and personal finance blogs.

Need A Longer Term Pay-Day Loan? Here’s How To Go About It…

hiringPayday loans are an essential comfort when you’re facing an unplanned financial burden, and it’s not the end of the month yet. They can mean the difference, for some, between life and death. Payday loans are credit facilities made available to intending borrowers by credit brokers, usually not very large, payable by the next payday, or spread over several paychecks.

They are crucial to people who are not financially strong or have invested most of their monthly income in another venture and need to access cash fast before the next payday. These loans are much more accessible from credit brokers and lenders than banks, as it would take you a shorter amount of time to apply for and access the loan, working with a certified credit broker than it would if you were to approach a bank for instance.

A huge chunk of the people who need a payday loan usually need it almost immediately, and approaching a bank will take a while and could be considerably more expensive.  For instance, accessing an overdraft from your bank even when the overdraft has been mutually agreed and authorised  by the bank beforehand, can be a risk more for a borrower with a slim financial profile, because of the atrocious interest rates charged by the banks.

Applying for and getting a payday loan from credit brokers, on the other hand, is fast (can be done online), and more lenient with the interest rates. But for some, it is not all about the loan application processing time, or the interest rates. They are also worried about how much of their monthly paycheck gets sliced off and ferried to the lender. Naturally, these people seek repayment plans that enable them to carry fairly on with their lives repaying a loan without having to significantly cut down on personal costs or readjust their spending all that drastically.

So, the main demerit of payday loans from most lenders is that they have short repayment periods and if you do not carefully cross check with the agent of the company you’re dealing with, making sure you have every single detail of the contract clear, you could easily walk into a rather uncomfortable few months, straining to clear the loan.

Take the case of a client blinded by the urgent need for extra cash. She approaches a credit broker and is surprised at how quickly her application is processed and her loan paid out. She quickly solves her pressing issue and is again able to concentrate at work, and at play. It all feels like a walk in the park, that is until the first repayment notification comes in just as payday approaches. Naturally, she is taken aback by how much of her paycheck will be used to service the loan, and although she is making this payment once, it guarantees a rather tight period in the coming weeks.

Although it is partly this borrower’s fault for not going through the documentation, as a general rule, it is better to find deals with longer term repayment so that when it spread across several paychecks, it reduces the shock value of your monthly paycheck. So, how do you find a longer term paycheck from a reputable lender with no funny stories or caveats or hidden charges in between?

The short answer: apply for a payday loan with creditpoor.co.uk. Creditpoor is a reputable loan lender with an impressive panel of lenders and is dedicated to helping you avoid the hassle of picking a lender for your loan with your likely minimal experience with money lenders. It is their task to find and acquire the best deals on payday loans for their clients. With Creditpoor you can access a payday loan with a repayment period of up to 12 months at a fixed repayment amount.
This is possible because of the strong relationship they have developed with the most credible lenders in the UK over time, as well as expert knowledge and manoeuvre in the industry. As long as you are 18 and above, have a steady paying job, and are resident in the UK, you are eligible for this 1 2-month pay-day loan.
Longer term payday loans often attract a higher interest rate. The best way to obtain one really is to work with a credible loan lender with a reputation for transparency and easy to understand terms and a friendly customer service. That way, you know exactly what you’re getting into and can be sure to receive technical support if anything goes amiss. Not to mention you don’t have to squirm under the weight of hefty paycheck slices.

 

 

 

The Downsides of Debt: The Insidious Side Effects of Financial Stress

calculator-1156121_640Financial trouble is one of the most stress-inducing things a person can go through. You don’t know how you’re going to find the money to pay your bills, nothing you do seems to work and you may even lay awake at night worrying about it.

While some debt is good, too much debt can have ruinous consequences on your present lifestyle and your future. You want to avoid getting into too much bad debt by spending less on things that lose value quickly and by paying off whatever you can every month. If you fail to do so, you may find out the hard way all of the negative effects that serious debt can have on you and your family. Here are a few things you may not have thought about when it comes to having too much debt.

Your Life Goals Get Postponed

Nearly everyone has a long-term life goal that they want to achieve. If you haven’t thought about it, think about where you’d like to be in 5, 10, or even 20 years. Having too much debt can force you to postpone those goals or make the outright impossible to achieve.

Carrying around a lot of debt that you just can’t seem to put a dent in can have far-reaching consequences. If you want to buy a house of your own one day or spend some time traveling the world, it’s very hard to do so when you’re thousands — or hundreds of thousands — dollars in debt. There’s just no wiggle room.

If you have long-term goals that you want to achieve, start working toward them by avoiding large purchases for while. This will prevent you from falling further into debt while at the same time freeing up some money to pay off your current debt.

Debt Can Cause Relationship Problems

Not only can debt be a problem for you financially, it can also cause emotional problems that spill over into your professional and personal relationships.

When you become stressed out over money, you start to worry about it constantly: the laying awake at night, the irritability that comes with being unable to see a way out. These worries can eventually put a strain on your relationships, causing you to lash out at friends or family members when they wonder why you can’t go out with them or why you won’t buy them something they want. This can start a vicious cycle that puts a strain on those relationships and, in the worst cases, cause those relationships to fail.

To avoid this problem, be honest with your friends and family when it comes to your debt. Oftentimes, those who care about you will support you in your troubles and they may give you the motivation you need to finally get out of debt for good.

Bad Debt Causes More Debt

Another effect of having too much debt is that it very possibly will cause you to incur more, even as you try to fix the problem.

When you have too much debt, it affects you credit score, which will cause you to be declined for any loans you may need and the best credit cards will no longer be available to you. This means that if you need cash quickly, you will be paying a higher premium because your credit score is lower, forcing you to pay higher interest rates which will cost you even more money.

Keeping your credit score high is the key to landing loans and credit cards at good rates, but it’s very difficult if you have a lot of late or missed payments. However much debt you have, try to make at least the minimum payment every month to keep your score up.

Your Wages Could Get Garnished

Most states in America allow companies to garnish your wages directly if you owe them money and have failed to make payments. As you can probably guess, this is a terrible thing to happen, especially if you want to pay down your debts.

Having less money coming in is in no way going to help relieve your financial stress. And if your wages are docked, you could hundred of dollars each paycheck to those you owe money to.

In order to avoid this, talk to the companies you owe money to and see if they will work with you. They want their money as much as you want to get out of debt, so they may be willing to lower payments or even lower the total money you owe them.

Don’t let debt stress you out. Do whatever you can to pay today.

Isabel O’Connor writes for a variety of personal finance blogs, sharing her tips and knowledge on how to manage, and escape debt.

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Long-Term Investing Strategies: Top Tips to Help Secure Your Financial Future

simple ways to hack the 52 week money challengeYou might be able to argue that putting your cash into stock with a view to making a short-term gain is gambling with your money, but putting your money into the market for a period of ten years or more is investing.

Regardless of how long you commit your cash for, there is always an element of risk to your capital of course but if you are interested in wealth creation over a period of time, you can give yourself more of a chance to witness better returns by developing some long-term investing strategies.

Here is a look at some ideas for investing that have stood the test of time and could offer you a path to a stronger financial future, including why it pays to stick to what you know, why investment delays have consequences, plus a tip not to turn down free cash when it’s offered to you.

Keep it simple

A good rule to stick to when it comes to investing is to only invest in something you truly understand.

Complicated and sophisticated financial products and opportunities might offer attractive potential returns, but if you really don’t know that much about futures, for example, it often pays to stick to what you know and can understand.

The issue is that if you are struggling to interpret the information and data you are presented with it can be challenging to make an informed decision. If you like the idea of picking stocks and investing in mutual funds, there is no reason why you can’t prosper in the long run with a more narrow approach that is based on fundamentals, rather than discovering you don’t really get complicated financial instruments.

Do your research

Reading details by OilandEnergyInvestor.com/2014/10/12-million-americans-making-fortune, for instance, is always a good way of keeping your eye on the ball and seeing what market conditions are like.

As well as scouring the various media sites for nuggets of information that you might be able to use in order to make a long-term investment play, it always pays to do your research and investigate a potential opportunity before deciding to invest your money.

No time to waste

From the moment you are born the clock is ticking and if you are going to secure a strong financial future for you and your family you need to try and get investing as soon as you possibly can in your adult life.

Far too many of us tend to drift through our twenties and maybe even a part of our thirties before getting the wake-up call that retirement and other plans need to be planned for and time is running out to get it done.

The basic principle to remember is that it is often the case that the longer your money is invested for the more chance it has to achieve its potential and grow to a sizeable sum.

You only have to look at how the investment guru Warren Buffett has fared to see how playing the long game really makes a big difference to your returns. He has always displayed extraordinary patience with the majority of his investments and this is a strategy that often delivers better rewards than trying to accumulate wealth quickly.

Even if you start investing small amounts early on in your twenties it can grow to a sizeable sum of money by the time you reach your forties and beyond, so there is no time to waste.

Why would you say no to free money?

Your government wants to encourage you to save and even if that might be because they would rather you were able to fend for yourself financially in old age than be any sort of burden to the state, it doesn’t make any sense to refuse their offers of help at this stage of your life.

What we are talking about here is the chance to get some very useful tax breaks with your 401 (k). If your employer participates in the scheme and matches your own contribution that could be a serious leg-up with your finances that you shouldn’t turn your nose up at.

You need to try and use every potential strategy possible to build your wealth and free money with a matching contribution is a no-brainer decision.

Don’t take out dividends

Dividends are a nice reward for investors but they are also the key to making more money out of the stock market than simply picking the right stocks to hold in your portfolio.

You could be forgiven for thinking that a modest 3% dividend yield is hardly going to make much of a difference to your fortunes but reinvesting those dividends rather than taking them out is a strategy that can make your portfolio grow to a much larger number over time.

If you follow some of these simple but effective investment strategies you should be able to give yourself a better chance of enjoying a more comfortable future.

Thomas Kent is a money fanatic who is always on the lookout for stock market and finance trends, news and insights. When he finds them, he loves to share them by posting on various finance and investing blogs.

Correcting a Pharmaceutical Fix: Help with Buying Medications on a Fixed Income

capsule-1079838_640With a now record number of Americans forced to scrape by on low fixed incomes, the pressures of modern-day life can be very overwhelming. House prices are continuing to rise and, paired with the cost of general living expenses like bills and food, many families find themselves with hardly any disposable money to spend each month.

It’s estimated that almost 70% of today’s Americans regularly take prescription drugs. And what comes side by side with taking prescription drugs? Having to buy them! Whilst medication is often an essential component for the day-to-day living of a huge number of people, millions of today’s adults are actually skipping medication simply because they can’t afford to buy them.

Medication saves lives, and the fact so many people are feeling forced to skip it because of money is simply unacceptable. Because of this, there are now multiple methods of help for those on low incomes who can’t afford full-price medication – you just need to do a little research and figure out what’s available in your area!

So, if you need regular prescription medication but find yourself helplessly struggling to buy them, here are some programs specifically designed to help.

Medicare drug benefit Extra Help

This Extra Help scheme has been created to contribute to prescription medication payments. But, in order to qualify for this help program, your monthly income must be lower than or equal to $1,528 if you’re single or $2,050 for couples.

However, if your income is higher than this, it’s still worth enquiring with the program as certain types of income may be an exception. You can apply for this program at any time and, if you qualify, will be able to discuss your medication list and come up with an appropriate payment solution.

Savings programs 

If your income is simply too high to qualify for the above program, there are plenty of savings programs designed not to pay for your prescriptions, but help you manage your money better.

If your income is higher than Medicare’s specified amount, you should technically be able to afford medication without help. Obviously, extenuating circumstances may affect your ability to do this but, with the help of a savings program, they’ll likely investigate how you’re spending your money and come up with methods of how you can free up some funds to pay for your prescriptions.

Often, money management is a key component when it comes to buying anything, not just medication. So, if you take advantage of this type of program and successfully free-up some of your income, you may find yourself being able to afford much more than just regular prescriptions.

Patient assistance programs

Instead of going with the brand your doctor automatically prescribes, opt for getting your medication directly from the company that makes them. If you do this, it’s likely you’ll get your prescriptions at a much cheaper price, or even free if the company offers a low-income program like described above.

Your doctor will probably have to apply for you, and will likely have to be involved throughout the entire application process. And, if you’ve already qualified for Medicare Extra Help, you may not even be allowed to apply for a patient assistance program. But, all companies will differ so it’s definitely worth asking your doctor about when the time comes for your next prescription.

If you’re on Medicare and do find you’re unable to apply, there’s no shame in admitting to still struggling with the cost if this is the case. Take a look at Nationwide Prescription Connection where you could potentially make more savings.

Safety Net providers

In certain community health centers, clinics and hospitals, pharmacies may provide your prescription at lower cost solely based on your income.

You’ll obviously have to prove your income to qualify for this discount and, if you’ve already qualified for the Medicare program, you may not have to contribute to the cost at all. To get the best idea of what’s available in your local area, go to your closest facility and simply enquire about whether they offer this Safety Net procedure or not.

Especially as we get older, prescription medication may become a regular part of life. But, if you struggle to afford the medication you need, you could run the risk of becoming seriously ill if you feel forced to stop buying. But by doing some research into the above programs, you’ll hopefully find a method of reducing the cost that suits both your income and lifestyle.

Lewis Atkinson runs a small town senior center. He loves to help others by sharing his insights and findings online. Look for his posts on various lifestyle and personal finance blogs.

Need A Longer Term Pay-Day Loan? Here’s How To Go About It…

hiringPayday loans are an essential comfort when you’re facing an unplanned financial burden, and it’s not the end of the month yet. They can mean the difference, for some, between life and death. Payday loans are credit facilities made available to intending borrowers by credit brokers, usually not very large, payable by the next payday, or spread over several paychecks.

They are crucial to people who are not financially strong or have invested most of their monthly income in another venture and need to access cash fast before the next payday. These loans are much more accessible from credit brokers and lenders than banks, as it would take you a shorter amount of time to apply for and access the loan, working with a certified credit broker than it would if you were to approach a bank for instance.

A huge chunk of the people who need a payday loan usually need it almost immediately, and approaching a bank will take a while and could be considerably more expensive.  For instance, accessing an overdraft from your bank even when the overdraft has been mutually agreed and authorised  by the bank beforehand, can be a risk more for a borrower with a slim financial profile, because of the atrocious interest rates charged by the banks.

Applying for and getting a payday loan from credit brokers, on the other hand, is fast (can be done online), and more lenient with the interest rates. But for some, it is not all about the loan application processing time, or the interest rates. They are also worried about how much of their monthly paycheck gets sliced off and ferried to the lender. Naturally, these people seek repayment plans that enable them to carry fairly on with their lives repaying a loan without having to significantly cut down on personal costs or readjust their spending all that drastically.

So, the main demerit of payday loans from most lenders is that they have short repayment periods and if you do not carefully cross check with the agent of the company you’re dealing with, making sure you have every single detail of the contract clear, you could easily walk into a rather uncomfortable few months, straining to clear the loan.

Take the case of a client blinded by the urgent need for extra cash. She approaches a credit broker and is surprised at how quickly her application is processed and her loan paid out. She quickly solves her pressing issue and is again able to concentrate at work, and at play. It all feels like a walk in the park, that is until the first repayment notification comes in just as payday approaches. Naturally, she is taken aback by how much of her paycheck will be used to service the loan, and although she is making this payment once, it guarantees a rather tight period in the coming weeks.

Although it is partly this borrower’s fault for not going through the documentation, as a general rule, it is better to find deals with longer term repayment so that when it spread across several paychecks, it reduces the shock value of your monthly paycheck. So, how do you find a longer term paycheck from a reputable lender with no funny stories or caveats or hidden charges in between?

The short answer: apply for a payday loan with creditpoor.co.uk. Creditpoor is a reputable loan lender with an impressive panel of lenders and is dedicated to helping you avoid the hassle of picking a lender for your loan with your likely minimal experience with money lenders. It is their task to find and acquire the best deals on payday loans for their clients. With Creditpoor you can access a payday loan with a repayment period of up to 12 months at a fixed repayment amount.
This is possible because of the strong relationship they have developed with the most credible lenders in the UK over time, as well as expert knowledge and manoeuvre in the industry. As long as you are 18 and above, have a steady paying job, and are resident in the UK, you are eligible for this 1 2-month pay-day loan.
Longer term payday loans often attract a higher interest rate. The best way to obtain one really is to work with a credible loan lender with a reputation for transparency and easy to understand terms and a friendly customer service. That way, you know exactly what you’re getting into and can be sure to receive technical support if anything goes amiss. Not to mention you don’t have to squirm under the weight of hefty paycheck slices.

 

 

 

The Downsides of Debt: The Insidious Side Effects of Financial Stress

calculator-1156121_640Financial trouble is one of the most stress-inducing things a person can go through. You don’t know how you’re going to find the money to pay your bills, nothing you do seems to work and you may even lay awake at night worrying about it.

While some debt is good, too much debt can have ruinous consequences on your present lifestyle and your future. You want to avoid getting into too much bad debt by spending less on things that lose value quickly and by paying off whatever you can every month. If you fail to do so, you may find out the hard way all of the negative effects that serious debt can have on you and your family. Here are a few things you may not have thought about when it comes to having too much debt.

Your Life Goals Get Postponed

Nearly everyone has a long-term life goal that they want to achieve. If you haven’t thought about it, think about where you’d like to be in 5, 10, or even 20 years. Having too much debt can force you to postpone those goals or make the outright impossible to achieve.

Carrying around a lot of debt that you just can’t seem to put a dent in can have far-reaching consequences. If you want to buy a house of your own one day or spend some time traveling the world, it’s very hard to do so when you’re thousands — or hundreds of thousands — dollars in debt. There’s just no wiggle room.

If you have long-term goals that you want to achieve, start working toward them by avoiding large purchases for while. This will prevent you from falling further into debt while at the same time freeing up some money to pay off your current debt.

Debt Can Cause Relationship Problems

Not only can debt be a problem for you financially, it can also cause emotional problems that spill over into your professional and personal relationships.

When you become stressed out over money, you start to worry about it constantly: the laying awake at night, the irritability that comes with being unable to see a way out. These worries can eventually put a strain on your relationships, causing you to lash out at friends or family members when they wonder why you can’t go out with them or why you won’t buy them something they want. This can start a vicious cycle that puts a strain on those relationships and, in the worst cases, cause those relationships to fail.

To avoid this problem, be honest with your friends and family when it comes to your debt. Oftentimes, those who care about you will support you in your troubles and they may give you the motivation you need to finally get out of debt for good.

Bad Debt Causes More Debt

Another effect of having too much debt is that it very possibly will cause you to incur more, even as you try to fix the problem.

When you have too much debt, it affects you credit score, which will cause you to be declined for any loans you may need and the best credit cards will no longer be available to you. This means that if you need cash quickly, you will be paying a higher premium because your credit score is lower, forcing you to pay higher interest rates which will cost you even more money.

Keeping your credit score high is the key to landing loans and credit cards at good rates, but it’s very difficult if you have a lot of late or missed payments. However much debt you have, try to make at least the minimum payment every month to keep your score up.

Your Wages Could Get Garnished

Most states in America allow companies to garnish your wages directly if you owe them money and have failed to make payments. As you can probably guess, this is a terrible thing to happen, especially if you want to pay down your debts.

Having less money coming in is in no way going to help relieve your financial stress. And if your wages are docked, you could hundred of dollars each paycheck to those you owe money to.

In order to avoid this, talk to the companies you owe money to and see if they will work with you. They want their money as much as you want to get out of debt, so they may be willing to lower payments or even lower the total money you owe them.

Don’t let debt stress you out. Do whatever you can to pay today.

Isabel O’Connor writes for a variety of personal finance blogs, sharing her tips and knowledge on how to manage, and escape debt.