The government of the United States provides different forms of loans and borrowings to her citizens. Such loans include Student loans, Child support, and consumer debts. These loans are to be deducted from the wages of the recipient who defaults repayment once the recipient begins to earn wages. Wage garnishment is, therefore, a court order to an employer instructing the employer to deduct and divert a certain amount of money to a person or institution to whom the employee owes money. The employee, however, has a legal right to determining how much can be deducted every month to ensure he/she can keep up with the living condition of the state.
Although wage garnishment is a legal and fair way of repayment of defaulted loans, the best way to preventing it is controlling one's finances which can be achieved with the following basic means.
1. Negotiate a repayment plan
2. Stick to a budget
3. Create an automatic repayment platform
4. Maintain a saving deposit
5. Cut off impulsive spending
Obtaining a loan might seem inevitable given the numerous wants craving for the scare resources at one's disposal. The government and other credible agencies make funds available to all so as to comfortably leverage on such to meet the mammoth needs and make for a better living. As you apply to obtain a loan from the creditors, there must be an established repayment plan to accommodate the repayment of the loan. The repayment plan would be best adhered to had it been communicated and agreed with the creditor. The negotiated and agreed repayment plan helps prevent the levy of wage garnishment on the tax defaulter.
The living is best within one's means. Planning on one's means and living a planned life subject on the plan is a better way to avoiding loans. Budgeting grants the ability to plan within available means so as to achieve targets based on priorities. Enacting a budget thus ensures that available resources are maximized to help achieve set aims and goals. Setting a budget is not the major challenge but the discipline and will power to abide by it. The set budget must be followed to curb the quest for loan and the satisfaction of same.
The beauty of obtaining a loan is not just in using the fund to achieve the rationale for obtaining the loan but also in the repayment of such as and when due. To ease the loan repayment, the lender should set up an automatic loan repayment scheme with the financial institution so as to remit on a timely basis. The authorization given to the financial institution in form of standing order enables monthly deduction of the loan repayment and helps to repay the loan over time seamlessly. Financial institutions are there to help the course of the people hence, leveraging on this help would make for a better living.
Keeping money in the days of plenty as precautionary for the days of lack is the major reason why maintaining a saving deposit is important. A saving deposit is money kept but not spent for a particular purpose. Of the three motives of maintaining saving deposit; transactionary, precautionary, and speculative motive, the precautionary motive enables liquidity to meet pressing needs as they arise. Being liquid in the times of need curbs the need for loan hence consequently preventing wage garnishment.
Knowing the difference between wants and needs help eliminate the urge for impulsive and spontaneous spending. Impulsive spending is a term for buying anything and everything without proper and adequate consideration of the need for the purchase. Impulsiveness creates the need and urge for obtaining a loan which can lead to wage garnishment. Wage garnishment can therefore be eliminated if the cause; impulsive spending is banished. Impulsiveness doesn't have any good it offers to the general well being of a life; rather, it further impoverish a life. Eliminating it thus do more good to living than evil.
What can be tackled today should so be! Keeping the evil of the day for the days ahead places more demand and burden on the shoulder of the future. More of what is tagged unavoidable like wage garnishment have curative causatives. Had the causes been cured at the very beginning, the saddening ripple effect would have been taken out of the way. Wage garnishment can be eliminated and avoided if all have the discipline and the willpower to adhere strictly to the means listed above
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