It is actually very common for people to be in debt.
Most people have debt of some kind or another, although of course it varies in degrees and severity. But it is important to remember that whenever you find yourself feeling low about it.
Debt is incredibly common, and it doesn’t necessarily have to reflect badly on you. It is important to get that out of the way beforehand.
Often it is these unconscious ideas which negatively affect our approach to money. Before long, you are in a negative cycle – and that’s all debt really is.
A negative cycle. The trick to getting free is to discover how the cycle is made, and step out of it. Easier said than done, perhaps, but still possible.
If you are sick and tired of being in debt, then read on. In this article, we are going to share some essential wisdom for finally getting rid of that debt of yours.
Whether you owe a small amount or much more, this is likely to help you in some way. Let’s take a look at how to do it now.
Come To Terms With It & Make The Decision To Change
Before you can really make any significant changes to your financial position, you first need to fully accept the position as it is.
This means that you need to take stock of how much exactly you owe, to whom, and how much you are paying in interest.
It is likely that you will need to get your calculator out and figure out what it is going to cost you in the future too.
This is often the most painful part for many people – but it is also absolutely essential. In a way, you can think of it as being like ripping a plaster off.
The quicker you do it, the better. It might be that you owe a great deal more than you really knew. If that is the case, don’t panic.
Just take heart that you have now done the right thing and you are on the right track. As well as taking stock of your debts, you also need to make the conscious decision to do something about it.
That means actively saying to yourself what you hope to achieve, and by when. Doing it in this way makes it much more likely that you will actually succeed.
If you don’t believe me, I recommend you give it a go. Say it out loud – it helps to create the psychological conditions necessary for change. This is essential if you want any real change to come about in your life.
Take A Look At Your Approaches
Chances are, you are in debt because of a series of poor mistakes made throughout a certain stretch of time.
One of the frustrating elements of debt is that you are constantly paying for your past mistakes. However, the most active and beneficial thing you can do here is to take a look at your approaches and attitudes towards money.
It might be that you have unconsciously been carrying out a certain behavior which has led to your debt.
Whatever it is, becoming conscious of it and bringing it to the fore is a powerful way of dealing with the debt itself. If nothing else, it will help you to avoid making the same mistakes again in the future.
This might be one of the most difficult parts of the journey, but again, it is also one of the most powerful.
Prioritize Your Debts
If you have many different kinds of debt at once, you are probably wondering how to deal with them, and in what order.
It is true that you need to find a good order with which to deal with them. But working this out can be more than a little tricky.
The key is to know how to prioritise your debts. That means first taking those debts which pose an immediate risk to your situation.
Perhaps you are being threatened with a court summons, for example. Clearly, this takes priority over anything else.
After that, it is a simple matter of looking at the interest you are paying on your debts. Paying off the higher-interest debts first is clearly the most sensible way to do this.
That way, you are saving money in the long run. After that should come those debts which are a little more easy-going. For example, debts to friends and family who do not mind too much.
But you should still work hard to pay those off, as they are important in their own way. With your debts prioritized, you should be in a good position to get started with actually paying them off.
Get Help Where Necessary
Paying off debt can seem like a real difficulty, especially if you are doing it alone. It can often seem like you are all on your own – but it doesn’t have to be like that.
There are plenty of places and people who will be happy to help you during this process. You might decide to seek the help of a professional debt relief counselor such as Alex Kleyner.
They can often make the whole process significantly easier on you. Similarly, asking your friends and family for support can make a huge difference to how the process goes.
Whoever you ask, make sure it is someone whose opinion you feel you can trust.
Don’t Add To It – But Do Treat Yourself
It is hugely important that you do not do anything to add to your debt in any way.
This might seem obvious, but it is often all too easily done. No matter what, make no effort to get yourself further into debt. Do not borrow money in any form while you are still paying off old debts.
This should be a blanket rule. However, you should feel free to occasionally treat yourself to something nice. This will help you to keep going on your venture.
Just make sure you do not borrow money to pay for it.
Do You Want to Clear Your Debts?
In the end if you follow the simple advice I’ve shared here you’ll be at better odds of getting that debt cleared up once and for all.
I know for me personally it’s been a tough and long road paying of my debt and I know that if I can do it, that you’ll be able to do it as well. I hope this has inspired you to move forward and take action on your debt today.
So what are you doing to improve your debt situation? I would love to hear your comments and stories about your debt situation below.