Debt often starts small like a snake in an egg. It hatches, grows, and slowly wraps you up in it’s death squeeze of trouble from which it’s almost impossible to escape.
It’s hard not to have some empathy for those who fall prey to a life of debt. As a teenager who knows nothing about money, taking student loans to pay for school and a basic lifestyle to get by, debt seems like the best option.
To be clear, we’re not here to judge those who took on debt in their youth. We’re here for two main purposes:
- To teach people how to avoid getting wrapped up in the layers of trouble that come with debt.
- If you’re already trapped, we’ll teach you how to get out of each layer of trouble so that you’ll be debt-free again.
We’ll discuss how to avoid getting wrapped up in the layers of debt-trouble and how to get out of each layer of debt.
Here are the 5 layers of trouble that come with debt:
- First layer: The Debtor Mindset
- Second Layer: Interest
- Third Layer: Lost Freedom
- Fourth Layer: Debt Cycle
- Fifth Layer: Loss of Mind
The First Layer: The Debtor Mindset
The debtor’s mindset: it starts off with confusion about money. Back in school, the idea of getting into debt didn’t seem like such a big deal. You were told that you’d have better job opportunities after graduation and that it was a good way to build credit. You felt confusion about whether or not you should get a student loan. If you had reservations, your friends and family might have persuaded you to go ahead with it anyway.
The first layer of trouble that comes with debt is the moment you take on debt. It can happen in the following ways:
“I need to do this so that my life will be better. I just don’t know how to get started. ”
“People think I’m lame, for not having a lot of money. I should buy a bunch of expensive things I can’t actually afford.”
Prevention is better than cure. Consider spending 100s, if not 1000s of dollars to learn the concept of debt instead of partying – prevent the debtor’s mindset in the first place. This is the decisive stage of your financial life.
Like all other people, we’re all looking for a good life and, at the same time, different from others around us. As hard as it is, we’re not always successful in getting what we want. The first layer is all about the vulnerability of getting hit by a trap.
This is how to avoid a debtor’s mindset:
- Instead of looking for the good life, get out of your comfort zone and grab the opportunities that are waiting for you.
- Don’t compare yourself with others.
- You shouldn’t feel bad about not having a lot of money or not having the stuff you can’t afford.
- Don’t let people or the system persuade you to take on debt.
The Second Layer: Interest
The second layer of trouble is the interest that comes with the loan. The interest, hits really hard for most loan-takers, regardless of their income or even their knowledge. Here’s how you can cope with debt interest rates
- Avoid paying unnecessarily high interest rate.
- You better are on the best deal with the lowest rate. If not, consider negotiating it again if possible.
- Pay often than what you think is regular.
- Don’t forget the principal. Make a complete plan to pay off your loan in full instead of blindly paying interest each month.
- The best way to avoid a high interest is to know how loans operate in the economy and how your credit is calculated. Books like “I give you credit” by Carlos Ariel Then can change lives by helping understand the malleable points of debt and Credit and prevent you from getting wrapped up with layers of it.
The Third Layer: Lost Freedom
If you are an average human being who receives a decent salary at the end of the month and just manages money without getting into “further” debt, you’ll feel the loss of freedom in the third layer. You’ll feel that something has been taken away from you. Your paycheck will be drained by the constant repayment of your loans and bills.
This layer leaves you with nothing to spend on yourself or your family. Even after 40-60 years, there may be a significant amount left to repay if you don’t get out of it as soon as possible.
The question then arises: how can I get out of this trap? Here’s how:
- Make changes to your lifestyle – change the defaults and adapt yourself for the new one.
- Meanwhile, invest in yourself to learn more about finances.
- Make notes about your budget to make better budgeting.
- Don’t buy things that are just for “fun.” “Fun” only pushes freedom away and away.
The Fourth Layer: The Debt cycle
Some people get into debt by trading the pleasure of now for the pain of later. If you’re caught in this trap, you’ll feel a cycle spinning without knowing where it will stop. It’s saddening but true.
Being aware of being trapped can help get out of it. The fourth layer of debt is the hardest one to get out of. By now, you’re probably deep in debt and have no other option but to keep on borrowing new loans to pay off the old ones. You feel like you’re stuck in a hole from which there’s no escape.
How can I get out of this layer of debt-trap? Here’s how:
- Change you way of looking the financial world. Your perception is probably wrong.
- Stop getting into more debt. Change your way of thinking with action and develop an awareness of the trap you’re in.
- This is not the right time to spend recklessly on things that will keep you caught in the cycle of debt for many years ahead!
- Build healthy habits of saving and investing money(no matter how little) instead of borrowing money all the time. It’s never too late.
- To escape from this trap and avoid getting into this trap again, do yourself a favor and don’t watch the YouTube videos created by all these random people.
The Fifth Layer: Loss of Mind
Due to the loss of your mind, your ability to think becomes stagnant. People are not even aware of this layer as they have become so used to it. If you have already got yourself to this layer, first of all, keep a calm mind. It’s not too late to get out of here. However, you may feel that your brain has been knocked out of you. You can’t make decisions anymore. Anxiety and depression will cause you to lose the ability to think clearly and come up with ideas on how to get out of debt. Not surprisingly, this is the layer in which most people stay for a long time.
How can I get my “thinking ability” back?
- Do meditation; it is always a good way to help you get out of this layer.
- Have the determination to stick to a single plan that will help you get out of this layer. Create one, well-thought plan, and be disciplined with it. Messing it up with too many thoughts will just make things worse.
- Find someone who has gone through it before to learn from him/her and never stop learning about debt until you’re able to live a debt-free life in the future.
- Create and stick to a budget, no matter how difficult it is.
What if you have reached the fifth layer?
Even if you have already reached the fifth layer of debt, it’s possible to unwrap yourself from the snake’s grasp. Knowledge is power, and power gives you the confidence to get out of this mess and not get into debt again.
While it’s true that you may have gotten yourself into this mess with your own actions, it’s still possible to escape from the trap. It does take time, and there is no way that getting out of debt will be a quick fix to your problems. It takes time, effort, and a lot of patience. But if you’re willing to set up a plan and work hard on it, the results will speak for themselves. People like Mr. Then thankfully exist to help with these sorts of things. Also, always be honest with your plan and stick with one. You’ll love it.
So, there you have it-the five layers of debt. It’s scary to think about, but hopefully, you’ve understood that there are steps you can take to try to get out of debt as fast as you can!