How an eccount can help you with getting out of debt
Getting into debt is easy, as you may have experienced. Getting out of it, however, is exceedingly hard and requires determination, expert advice and a solid strategy. An eccount may look like a simple bank account from the outside, but it can play an important role in such a strategy and can get you back on the road to recovery again. To explain how this works, let’s have a look at the different ways an eccount can help you with getting out of debt:
1. Debt alert
There are a few things you just can’t buy and time is one of them. When it comes to your finances, meanwhile, time can truly be money. Especially when there’s not enough money on your account to cover your expenses for the rest of the month, you may be forced into taking up expensive short-term loans and running up debt.
An eccount can help you budgeting thanks to its inbuilt debt alert function: As soon as your balance drops below a certain level, you are sent an SMS to your mobile phone – allowing you to take action to keep you from having to take up expensive credit.
2. Debt prevention
One of the biggest challenges for those in financial trouble is to avoid racking up even more debt. This is because interest payments may drain your resources and force you into taking up a new loan. These new credits in turn generate new interest rate payments and create a system of increasing interests which can quickly spiral out of control. This is why it is of utmost importance to prevent new debt from building up. An eccount is perfect in this regard, as it doesn’t allow you to go into overdrafts. This way, your budget will remain balanced, leaving you in full control of your finances.
3. Interest management
Few people realise why overdrafts and credit card debt are so problematic. It isn’t so much the fact that you’re taking up debt to cover your expenses in principle – after all, expensive products like a house or a new car will come at a price only a minority of people will be able to cover out of their own pockets. What really matters is that these facilities tempt you into paying interest even on items you could afford yourself. Especially credit card use has risen dramatically, leading many consumers to pay interests on clothing or dinner bills, which they could easily have paid for in cash.
The lesson you should learn is to separate your income from your debts and to only pay interest if you really have to. With an eccount, you can naturally still take up a credit. But you can make absolutely sure to only apply for one if you really need it.
4. Spending behaviour
An eccount reminds you that spending and earning are directly related. After all, you can only spend what’s on your account. For most of our customers, this leads to an important shift in their behaviour and attitude towards consumption. You, too, will notice this. It won’t make you stop enjoying yourself or going on a shopping diet. But it will make you consider each purchase more deeply than before – and thus lead you to enjoy the things you’ve bought much more than before.
As mentioned, an eccount can not replace a sensible debt management strategy – but in terms of supporting you in your goals and decisions, it can make all the difference between beating debt and being beaten by it.