People getting into debt does not occur overnight. Therefore, they are in a state of denial that they are actually having financial problems. Most people are usually able to make a late payment here and there until more than one bill becomes late.
It is easy to see why people would be in denial about their debt. Each day in the media there are reports about the increasing and overwhelming situations currently happening, such as:
— Recent mortgage increases which are making it more difficult for first time buyers to buy a house.
— Credit card payments are more than likely due to increase in January. Initially only three major bank-owned credit cards had raised their minimum payment. It appears that in January all bank-owned credit cards are going to double the payment. If you are paying $50 a month for a card now expect it to double to $100 in January. Think how much it will be if you have three or four credit cards.
— Cost of natural gas increase.
— As the holidays approach, people shop and charge most of their holiday spending.
It is conceivable that people would choose to put their fixed expenses on credit cards to give them more time to pay. However, as those cards add up, the destruction can begin as follows:
— Lack of money to pay the bills begins disrupting the allotted household finances
— Place of residence is placed in jeopardy if not able to pay rent or mortgage
— Car could be repossessed if monthly bill is not paid
— Relationship with family becomes tense if money was borrowed from relatives or parents in the past and has not been paid back.
Taffy Wagner shares ways the average person can overcome increasing and overwhelming debt which leads to the three D’s. Her lack of knowledge and poor choices led her to being in debt and homelessness. She explains how she got herself out of debt without filing bankruptcy and the steps the average American can take to get their finances in order.Wagner is the author of Amazon.com Bestseller Debt Dilemma