Nowadays people having debt is something of a normal thing, and in the US alone, consumer debt is at an all time high with most adults at least owning one credit card or having some kind of loan repayment each month.
Now, the first thing to understand here is that having debt is not actually bad in and of itself - a little debt can actually be a good thing because, for example, if you want to take out something like a mortgage and get a house, then you’re going to need a credit history to show that you can make repayments without defaulting.
However, when debt starts taking over your life and you’re no longer able to control it or do anything to stop it getting worse, then it’s a problem and one that can cause massive stress and other things in your life to become worse.
You can read many posts from experts like Rashad Blossom on how to deal with debt and the problems it can cause.
So, if you’re currently dealing with any kind of debt and are starting to feel like it’s overtaking your life, then in this post we’re going to share with you some of our simple strategies for getting out of debt.
The very first thing you need to do with debt is face it head on - it can certainly seem scary and this is why many people who have debt are avoiding things like opening letters, etc, but really once you face it you’ll see that it’s not as bad as you thought, and even if it is, you now have the knowledge and power to change it. You should start by taking note of everything you owe and then make a spreadsheet with all the information, including how much, to whom, and any other details you feel are necessary.
Review your spending habits:
When it comes to debt, we often think it’s a lack of money that causes people to not be able to afford the repayments on things, however, more often than not it’s simply a case of looking at where they are spending their money. For example, people who say they can’t afford to make a $100 per month loan repayment may feel like they can’t afford that because they’re not earning an extra $100 per month, but if you look at their spending habits and they’re doing things like buying a fancy coffee on the way to work each day or spending $10 per day on lunch, then you can quickly see where this money could be found if they focused onf reviewing their spending habits and cutting out some non-essentials.
Make arrangements to pay:
In the spreadsheet that you’ve created, you should now take a look at this and start going through and contacting each company on there so that you can make arrangements to pay. Not only will this make you feel good because you’re taking back control, but it will stop things like final reminders and interest mounting up. Many times you can even ask them to wipe the interest already charged if you arrange to stick to a monthly payment plan because really all they care about is getting their money back and will be happy to work with you without having to go through the process of going to court.