Getting Out Of A Debt Trap

One of the biggest misconceptions about money is that it is all math. Nothing could be further from the truth. We each have our own relationship with money, and it has an emotional aspect, too. Now, let’s extend this to debt. Yes, the math needs to work out when it comes to debt repayment. But we will keep hitting against a brick wall if we do not face the emotional aspect of that debt. The word debt itself is emotionally charged and evokes anxiety or even guilt. Debt increases stress levels. It also keeps you emotionally obligated to individuals whom you are financially indebted to. Debt has a huge financial cost, too. When you service your credit card debt of around 24 per cent annualised, be mindful of the fact that it can costs you a lot more than you can ever earn elsewhere. Even if you are servicing a much cheaper loan, say 12 per cent per annum, once you clear it, there is...