Are You A Slave To Debt?
If you are overwhelmed by debt you may feel like a slave to that debt. It may feel as if you will never get out of from under the burden of it.
If you worry about it day and night, you need to do something about it before it suffocates you. Debt is okay as long as it is controllable. If your debt is strangling you it has become uncontrollable and you need to take action.
#1 – Acknowledgement
You need to admit and acknowledge that the debt exists and that you alone accumulated it.
#2 – Acceptance
Accept the debt. It is what it is. It will not disappear if you ignore it. Your creditors are real.
#3 – Relax
It’s going to be okay. Your debt burden will not last forever, you can turn things around.
#4 – Make A Plan
The best way to move forward is with a plan. Create your own personal action plan. If someone creates it you may not follow it. You need some skin in the game. A debt consolidation specialist such as One Main Financial may be able to help you design your action plan.
#5 – Stop The Bleeding
The first step in your plan should be to stop building up any more debt. Stop using your credit cards. If you cannot afford to pay for something on the spot with cash do not buy it.
#6 – Make Your List, Check It Twice
You need work from a list. Where is the debt coming from? Do you have overdue credit card payments? Are you late on your utility bills? Do you own a few car payments? Is your rent due soon?
#7 – Work The List
Determine which bills you will pay off first. Work with your creditors, most are reasonable if they see that you are making an effort.
#8 – Plan A – Break It Down
Pay off the most serious debt first. If your landlord will be evicting you, pay them first. But if they give you a break and your car is about to be repossessed pay that first.
#9 – Plan B – Satisfy All
If Plan A doesn’t work another approach would be to ask for mercy. Explain to your landlord, credit card company, utility company and car loan company that you are in trouble and need their help. You want to satisfy all of them and would like to set up a payment plan to pay a little at a time.
#10 – Double Time
If you are serious about paying down your debt you may have to pick up some extra hours at work or get a second job. It may be worth it if you can break free from the slavery of your debt.
Stay Debt Free, Follow Your Money
You only make so much money. After you get your debt back in order remember that it’s not about what you make but what you keep. Staying out of debt is a difficult task. However if you keep in mind that you need to live below your income level you should be okay.