Debt is way more than just numbers on a bank statement, the huge repercussions that come attached with debt stress, is far reaching in to all aspects of your health, family life and relationships. The amount of worry and anxiety viciously affects your psychological health, which directly affects your self-esteem and your faith in your life and the people in it, like your partner. Debt just needs to be managed and you can take control of your life again. From assessing your financial situation by a professional to making a choice to contact a factoring company, there are trusted ways to solve this issue over time. Here are 7 Unbelievably Efficient Ways to Deal With Debt Stress ways to help you start managing your outstanding bills and taking back control of your finances.
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1. Acknowledge Your Financial Situation
Sit down with your partner and get all the scary accounts, monthly statements and any amounts owing on to the table and work out exactly how much you owe. Half the stress is worrying about what you think your debt is, and not knowing exactly how much it is, once you have a number in front of you, it will be that much easier to take control and sort out the repayments.
2. Make an Appointment with a Financial Planner
At this point there is the worry of incurring extra debt by hiring a financial planner, but let’s face it, if you are in so much debt that it is ruining your life, your marriage and your health, can you actually afford not to get professional help? Your planner will be able to help you take the big numbers and break them down for you into manageable payments, and suddenly you will see a light at the end of the tunnel. In short, it’s the first practical step in taking hold of debt stress. Yes, it will take a long time, but you will get there with the right information and the best plan, and you still need to live in the meantime, so your planner will help you balance your daily needs with the repayments of your debt.
Frequently asked questions
Hey, I totally get it, debt is overwhelming! Start by organizing all your debts. Know exactly what you owe and to whom. It might be scary at first, but seeing it all laid out can reduce anxiety. From there, you can prioritize and come up with a game plan.
Keeping your spirits up is crucial! Celebrate small victories, like paying off a credit card. Set clear goals and perhaps treat yourself to a little reward when you hit a milestone. It doesn't have to be big, maybe a favorite coffee or a movie night in!
Absolutely! You shouldn't have to carry this burden alone. Talk to friends, family, or a professional. Sometimes just having someone listen can lift some of that weight off your shoulders. Plus, they might have some great advice you haven't considered.
Yes, they definitely can. Think of budgeting as a lifestyle change, not a sacrifice. Maybe swap dining out for fun home-cooked meals or try free events for entertainment. These small changes can make a huge difference over time!
It might be! Debt consolidation can simplify your payments and sometimes even lower interest rates. But it's super important to do your homework and ensure you're getting a deal that works for you. Maybe chat with a financial advisor to weigh your options.
3. Repair the Relationship with Yourself
Yes, you got into debt, yes it is going to be difficult to pay it back, and yes it has adversely affected your life and that of your family. But remember not to look back, you are not going that way, you are going forward. Having debt doesn’t make you a bad person, a bad partner or a bad parent, and now that you have take the steps to start repairing the situation, you should award yourself with a few strong words of encouragement, as acknowledging debt stress takes some courage, and dealing with it head on takes even more.
4. Manage Your Stress
Just because you have taken courageous strides in repairing your fiscal health, doesn’t mean the stress just evaporates, there are still going to be many times when the anxiety levels are high. And to be perfectly honest, debt stress will certainly put hair on your teeth, but you will be able to surface victorious. However, you need to manage your stress before your stress manages you. Eat healthily, drink water, get enough sleep and get some exercise, nothing like a bit of fresh air and nature to remind you what you have to be thankful for.
5. Communication
In this day and age of the credit crunch, everybody has accumulated debt, and huge amounts of debt stress - some more than others. Financial institutions are creditors are all waiting for money from everybody and no matter what your situation, there is always somebody worse off than you.
You will be surprised at how agreeable creditors are in discussing ways for you to repay your debt, for them, smaller, more regular payments at this stage are much better than none at all. If you communicate with the companies that you owe money to, you could find that your tenacity not only earns you a customized payment plan, but a squeaky clean credit record as well.
6. Don’t Create More Debt
Just because you have now taken a stance against your debt and your payment plans are in place and all the creditors are pleased with progress so far, doesn’t mean that you are now free to continue spending. The golden rule is, don’t buy anything. Frugal living needs to be the order of the day for the time being and as hard as that is, a lavish lifestyle during these times of debt stress is only going to make the nightmare last that much longer. Part of being fiscally courageous means bringing rash spending habits to book and reining in of all areas of your life that are costing unnecessary money.
7. Extra Income
Your planner may evaluate your financial situation and recommend that you and your partner find ways of supplementing your monthly income to alleviate some of the strain during these difficult financial times.
Before you make excuses, think about this very valid point and look at ways to turn hobbies into extra cash, who knows, it might lead to another career path. Making money online is a concept that is booming, and with a little bit of research, you could very well find something that will generate a little bit of extra pocket money every month. Turn you’re baking skills into money, sell to your friends and family and you may find you start getting regular orders.
Debt stress is manageable, and what will count is the way you deal with it. These 7 Unbelievably Efficient Ways to Deal with Debt Stress will help you on your way to getting out there and taking your life back. Life will get better, slowly but surely. Do you have a story about how you managed your debt and survived to tell the tale?
Support is paramount to recovery and everybody who is going through a debt crisis will appreciate some support. Have you been there, can you support somebody else who is there right now? Come forward and share your experiences, you may help change somebody’s life.