How does social media affect your debt, and how to limit the effect?

Are you tired of being intimidated by the flashy lifestyles on Facebook,
little kids wearing outfits that cost more than your monthly wages, or
luxurious holidays that would put the Obamas to shame? Well, cage the urge my
fiscal friend and face reality, because social media intimidation could affect your bank statement
as well as your mental health if you don’t. Many people have had to borrow,
exceed their credit card limits, and obtained loans, all in the name of keeping
with their virtual friends on social media. What many fail to grasp is that
nobody is Instagramming their crap boiler or their dodgy cookers on Twitter.
However, if you’ve been sucked into this illusion of luxurious spending, and
you’ve splashed the cash beyond your financial muscles, there is still a way
out after all, and that is what this article is about – how to handle your
social media influenced debts.

Overspending

Before social media came into our world, people only had to keep up with
their colleagues and friends. Now it’s millions of people across the globe. In
your timeline, you’d see Jane from college posting her brand-new Mercedes. Then
you’ll go to Instagram, only to find David from your Church showing off how he
spent his last holiday. So, in order to keep up, you’ll also buy that pair of
lust-worthy heels someone posted on Facebook or the latest iPhone. In the end,
it makes you feel better until you check your bank balance, or your credit card
statement arrives. Overspending has damaged many people’s financial status and
led them into debt. There is, however, a debt management solution for you – if
you need help with debt – in order to handle this well. However, if your case hasn’t resulted in
debt yet, there is also a recommendation for you, so that you won’t have to
deal with the burden of debts.

• Create a budget

This is perhaps the ultimate way to get a solid handle on your money. If
you have a budget you live by, it would be nearly impossible for you to
overspend, even when you are bombarded with the urge to splash the cash on
social media. If you have a working budget – which you’ve created based on your
income – you’ll have a good idea about how much money is left for savings and
luxuries, after you’ve considered your necessary expenses. Think about it, if
you only have $200 to spend on luxuries every month, and a friend posts some
flashy shoes on her timeline which costs $350. You obviously cannot afford
that, because your budget doesn’t allow that. This is an excellent way to
channel your money in the right direction.

FOMO

Fear of missing out – we’ve all felt it at one point or the other. Social media portrays everyone’s lives as being perfect, and this has led many people into obtaining loans, raising their credit card limits, personal debt, and so many others. Your friends are heading out for dinner, but you don’t have the money to go – so you dip into your credit card. The girls are going on a girls trip to Miami, and you don’t want to miss out – so, you obtain a personal loan. Your brother is getting married, but they told you, don’t worry, you only have to pay for the transport fare – so, you break your budget, and get into debt. So, once in a while, FOMO gets the better of every one of us, and we splash the cash. But, the consequence lives in our financial books, and in the end, we have to deal with our debts. Has FOMO led you into significant debt, are you struggling to fulfill your monthly debt repayment, is your creditor breathing down your neck? Well, there is still a way out, after all.

• Renegotiation

If social media intimidation has led you into borrowing, and now you can’t keep up with the payments, this is the ideal solution for you – because what you need is debt help. In the US, there are companies like Credible which let you compare various types of loans including debt and credit card consolidation loans, which can be a lifesaver. There are many ways to cut-out your debt burden, but none are without their cons. However, if you find yourself struggling with social media influenced debt, then you might want to consider an Individual Voluntary Arrangement.  Since they were first introduced under the Insolvency Act 1986, IVA’s have helped thousands of people across the UK to get themselves out of debt and firmly on the path to a much more positive financial future. So, if you’ve overspent due to social media pressure, IVA can help you out, by renegotiating your debt repayment plan with your creditor.

Social media pressure is
capable of wooing anyone into spending, even those with stringent purses. But
you’ve just got to stay disciplined, and in case you can’t resist the urge, and
you end up in debt, always remember there is still a solution after all.