holding on to qualities that derails proper budget management makes the [budgeting] task tougher than it should be
Dallas, TX (PRWEB) August 08, 2014
Debt Consolidation USA recently shared in an article published last August 4, 2014 some of the consumer qualities that leads to financial problems.The article titled “5 Qualities That Will Lead To Financial Problems” aims to educate the consumers in identifying such qualities and addressing them accordingly.
The article starts off by stressing the fact that a big reason for most financial difficulties of a consumer is not based on the size of the income. It is not about how much a person is able to make but how good the consumer is able to manage the funds. Budgeting is a skill developed over time but as hard as it is, holding on to qualities that derails proper budget management makes the task tougher than it should be.
The annual rate of the household debt increased in the first three months of 2014 by 2%. This is a lot of interest payments that benefits the lenders more than the consumer. The amount of money paid for interest could have been used to secure a better financial future for the consumer, but holding on to qualities that negate this objective is doing a lot of damage.
The first of which is ignorance. There are some who choose to ignore the problem at hand, thinking that it would go away on its own, but payment obligations do not disappear and comes back with interest, penalties, and fees as vengeance. There are also consumers who prefer to look the other way as they continue with bad financial habits.
The article also talks about the lack of discipline of consumers as one of the qualities that leads to financial problems. It could be the lack of discipline in foregoing purchases that cannot be afforded by the budget or not meeting financial obligation every month. It can also be lack of keeping the finances straight and neglecting to update the monthly budget.
There are also some consumers who have unrealistic views about money. The article shares how drastically cutting expenses on basic items can lead to deprivation and rebound. One example would be food budget. If a consumer cuts down on food budget, it can open the door to sickness and can lead to bigger expenses compared to what was saved from the budget.
The article also talks about some consumers being materially competitive. This is when someone sees the neighbor with the latest SUV, some are compelled to buy one as well. It can also be that an officemate has the latest smartphone, prompting the purchase of one only because someone has it.
To read the rest of the article, click on this link: http://www.debtconsolidationusa.com/personal-finance/5-qualities-will-lead-financial-problems.html