Published on September 25th, 2014 | by Pete0
Overwhelmed by Debt? Follow These Tips
Being in debt can have a debilitating effect on many other areas of life besides your finances. It can cause relationship stress, depression and has been linked to a variety of anxiety disorders. If you are feeling overwhelmed by debt you can take some action towards improving your situation, starting with accessing some of the debt management advice online. Many debt management experts like Positive Solutions Finance offer helpful information and can even assist you by speaking to your creditors on your behalf. Here are a few tips to help you get out from under that debt.
Move The Boulders First
This means, look at your biggest debt costs and focus on getting those out of your life before you do anything else. It may not be the largest amounts you owe that are the biggest stressors. In fact, it’s more likely to be the debts with the highest interest rates attached that are the scariest. Start by cutting your expenses as much as you can. Be ruthless, and funnel any and all available monies onto your highest interest rate credit card. Once that’s paid down, don’t carry any rolling expenses on that card again, and put the same money towards your next highest interest rated debt. Keep doing this until all your credit cards are paid off – and then get rid of as many of them as you can. Once these big debt boulders are out of your way, you can work on shifting some of those smaller stones.
It’s a great deal easier to reduce your outgoings than to increase your income. You don’t have a lot of control over your salary, or whether or not your employer chooses to hand out bonuses this year, but you can make some changes to your outgoings. Try skipping your daily takeaway coffee, for example. Bringing your coffee in a travel mug from home instead of grabbing one from the local barista each day can save you around $1,000 a year. Buy bottled water at all? That’s between $500 and $800 a year you’re spending. When you pack your own lunch each day you’re saving yourself upwards of $3,000 a year too – cheese sandwiches might be boring but is sushi from that trendy lunch place near your office really worth $3K?
Get Help If You Need It
If you are feeling unduly burdened by your financial situation, and think it might be causing you anxiety or depression, it’s very important to seek assistance and support to deal with those feelings. Start with your GP and take it from there, but don’t let unhealthy thoughts cloud your thinking. You can get past your debt situation, but you’ll need to face it and handle any consequences. You might require a little support to do this so don’t be afraid to ask for it.
One of the most important things to remember when you feel overwhelmed by debt is that you can get past it. With a little focus and a lot of discipline – not to mention assistance and support if you require it – you can climb out from under the weight of debt.
Have you ever felt overwhelmed by debt? Share your story in the comments box below.