Many people exist inside something known as a debt cycle, and they don’t even recognize it for what it is. And what’s worse is that even if they do realize what’s happening, they don’t have any power to get out of it.

So what exactly is a debt cycle? Very simply put, a debt cycle is a constant need to borrow money to pay bills, which actually leads to increased debt overall. It’s a never-ending hole that gets deeper and deeper. This pattern of borrowing and increased debt continues over and over, and eventually, the interest rates of the money borrowed becomes a large monthly bill itself.

People in debt cycles often owe more money to their credit cards than they can afford to pay. And when someone doesn’t have enough money to pay all of their bills, they have to pick and choose what payments will be on time, and which will be late. Late payments almost always end up in late fees and penalties which means more debt overall, making the cycle even worse.

And even if some people are able to technically pay their bills on time, if they’re forced to pay the minimum payments on their credit cards, they’re just treading water. The trap of the minimum payment is a dangerous one because it feels like you’re making progress, but you’re not. The average interest rate for people in America can range from 12%-15% or more, and when you’re paying the minimum payment, you’re never making a dent in the total amount owed.

Some people know they’re in a debt cycle, but still choose to stay in it for reasons that don’t add up if you look at them closely. For example, some people don’t want to lose their reward points. But let’s take a closer look at that reasoning. If you have a person who paid $3,000 to build up enough rewards points to take a trip that would actually only cost you $600 out of pocket, you’re over-paying for your trip by $2,400 dollars.

So that person is paying five times too much for a trip because it feels free when it’s through reward points. Rewards points aren’t typically worth destroying your credit and living in the constant stress of a debt cycle.

Are you in a debt cycle? Here are some questions to ask yourself if you’re unsure.

• Are you having to borrow money or use credit cards to pay off other debt?
• Are you able to save money regularly, or at all?
• Are you making less money than you owe each month?
• Are you making minimum payments on most or all of your credit cards?
• Are you living paycheck to paycheck?

Did any of those questions ring true to you? If so, it’s very likely that you’re in a debt cycle. But don’t worry– even if you are in a debt cycle, it’s finally time to break free.

Here at Reliant Management Solutions, we have a money-back guaranteed program that helps people gain the financial freedom they deserve.

You don’t have to face this alone. Give us a call, and we’ll give you a free consultation today.