As you take on more and more debt, you can be rest assured that your financial situation will change in many ways.

Mounting debt has a way of making you vulnerable to poor decisions. Subsequently, as you make these decisions, your situation worsens and the cycle continues.

Here’s an example. You continue to use credit cards to get through each month, despite the fact that you understand the negative impact it’s having on your finances.

At some point you realize that your credit cards are maxed out, thus leading you to explore other avenues for keeping your head above water.

For some, this means one thing: searching for any type of loan that allows them to get their hands on more money.

Since traditional lenders are likely to shoot you down, as a result of your current debt load, you find yourself considering loan sharks and payday lenders.

Your vulnerability during this time makes you believe there’s nothing wrong with this decision, as you need the money to live.

Unfortunately, going down this path is only going to make your situation worse. Here’s why:

  • A loan shark will only lend you money with a high interest rate attached to it
  • You’re not doing anything to improve your situation, but instead making it worse by taking on another loan
  • Once you use the money you’ve borrowed, you’ll find yourself once again searching for more (this is a cycle you need to break)

You’re not the only person who is facing mounting debt and all the stress that comes along with it.

While it’s easy to take on more debt as a means of holding things together for a little bit longer, this approach will eventually catch up to you.

You may be vulnerable during this time, but that doesn’t mean you should continue to make poor financial decisions. Once you put your foot down, you’ll be surprised to find that there are many legitimate strategies for clawing your way out of debt and better enjoying your life.

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