Did you know that children’s toys can be a great source of debt relief tips? In particular, the interlocking plastic bricks from the brand Lego can give you helpful tips that will make debt freedom easier to achieve.
Paying off debt is one of the most common financial challenges faced by American consumers. 70% of our economy is fueled by consumer spending. The more we spend, the more the American economy thrives. This is one of the main reasons why businesses encourage the use of credit. It increases the purchasing power of consumers.
Of course, this makes it easy for consumers to abuse the use of credit. According to a study done about American consumers, two-thirds cannot pass the basic financial literacy test. You can bet that it includes their inability to use credit wisely. This is why a lot of Americans are in dire need of debt relief tips.
Fortunately, you can find these tips just about anywhere. You just have to know where to look. In case you are suffering from debt problems, why not set a Lego date with your kids. As you build different structures, you might find a couple of tips that will help you solve your debt situation.
We can name 4 of them in this article.
Debt relief lesson 1: Get the general picture
Before you start assembling a Lego toy, you need to look at the whole picture first. First of all, you want to know what you will be building. You also want to check if you have everything that you need to complete the toy.
The same is true when you are trying to get out of debt. You need to know the whole debt situation first and if you have what you need to solve it. This is the only way that you can come up with the perfect repayment plan. When you try to analyze your situation, there are a couple of things that you need to take note of.
- Total amount of debt. You want to know the outstanding balance that you owe. This will come in handy in case you decide to consolidate your debts.
- Type of debts. Take note that there are debt relief programs that you cannot use on certain type of debts. For instance, secured debts like mortgage loans might not work for debt settlement.
- Interest rates. Look at every debt on your list and place the corresponding interest rate. If you want to use debt consolidation loan, you would want to compare the interest rate of the new loan with the current ones. If you will be paying a higher interest rate, what is the point of consolidating? You might be better off with debt settlement or debt management so you can negotiate for a lower interest rate.
- Creditor and lender information. In case you plan to negotiate the debt, you need to know who you will be talking to.
- Personal finances. Finally, you want to know your financial situation. This will give you an idea how much you can afford to pay your debts.
Debt relief lesson 2: Know your intended end result
Going back to the Lego, if you have seen what you will build and checked the pieces you need to complete it, the next step is to know the end result. There are some Lego packs that will allow you to create different structures. What exactly do you want to do? You cannot create a plan unless you know the intended result that you want to achieve.
When it comes to debt relief, you need to know what you want to happen in the future. The different debt relief programs have varying effects on your personal finances. One might have an effect on your credit score. If you need to borrow a loan in the near future, you might want to stay away from that debt solution and opt for one that will not have a negative impact on your score.
It may seem like a waste of time to you but knowing your goal will help you accomplish more. This is according to a study cited by an article published in Forbes. So make sure you have a clear picture of what you want to happen after the debt relief program. It will be easier to choose the right solution that will successfully get you out of debt.
Debt relief lesson 3: Have a plan and follow it
Among the debt relief tips that you can get from playing Legos, this is one of the most important. You cannot build a Lego unless you have a plan. You cannot just get a brick and start with it. You need to look at the diagram and follow it.
Planning will help you understand how you can successfully reach your goal. This is very important in just about any project or endeavor. It is not enough that you envision your end result. You need to map out a plan that will get you from where you are to the intended destination.
What makes this a practical tip is that it allows you to foresee possible problems that you will encounter in the future. You can be prepared to deal with it when you encounter these hurdles. Not only that, you will know what you need to prepare in order to completely get out of debt. Just like in assembling a Lego structure, you need to know what parts you need to complete certain parts of the whole toy. You need to prepare it so the assembly will flow smoothly.
Debt relief lesson 4: Take it one step at a time
The last of the debt relief tips that you will get from assembling a Lego toy is to go through the whole process one step at a time. You need to go through with it one brick at a time and one section at a time. You cannot skip a process because it can compromise the output that you are aiming for.
This is also applicable when you are trying to get out of debt. You need to go through it one step at a time. You do not really have to rush through everything. As long as you are not missing a payment or you are following the process correctly, you should be fine. Just be true to what you can afford to pay each month and do not stretch yourself too tightly. If you put too much strain in your finances, you might end up feeling burnt out. That could lead you to make drastic decisions that might compromise your chosen debt solution.
It is actually a good idea to have a financial blueprint when you are trying to get rid of debt. It will help you identify all the steps that you need to go through and ensure that you will not skip anything.
As you can see, even the simple game of Legos can give you great debt relief tips. In fact, if you know what you want to achieve when it comes to your finances, you will get a lot of inspiration from what you see around you. Hopefully, these tips will help you get out of debt and make better financial choices in the future.