If mounting credit card debt is weighing you down, getting real about your circumstances is a prerequisite for determining how to get back on track. Being honest about your feelings about your obligations, your spending and saving proclivities, and your future goals can make it easier to manage your debt load. If you’re considering debt settlement, check out Freedom Debt Relief reviews. But in general, the following are some things you should mull when you’re ready to assess your relationship to debt.
Understand Why You’re in Debt
When you want to get your arms around your debt, it’s helpful to figure out how you got into the situation. But first, know that you’re not alone. Millions of Americans are struggling with their obligations.Â
With that in mind, you must come to grips with why the debt exists. Not all debt is due to unwise financial decisions. Many people find it necessary to take out a mortgage or college loan, for example. Or, if they’ve unexpectedly lost their job, they may have to temporarily rely on credit cards to weather the storm.Â
There are times, though, when debt is due to overspending. Again, you have plenty of company, and no one’s perfect. Just because you’ve made past mistakes doesn’t mean you can’t do better in the future.
Figuring out how you got into debt can help you craft a plan to make different decisions going forward.
It’s important to remember that you didn’t get into your situation overnight. Thus, it’ll take some time to get out of debt. You’ll need patience and diligence. What’s most important is that you take the initial step.
What Feelings Does Debt Trigger?
Be honest about how debt makes you feel, be it anxiety, shame, or uncertainty about what to do. Write down all your feelings, allowing the words to flow. Once you’re done, go back and read what you wrote – without judgment. Just acknowledge whatever you’ve written.
What’s most important here is that you can ultimately produce whatever feelings you want. Think about how you’ll feel after you’ve cleared your first debt and keep that in your mind. It will help you to keep taking steps toward your financial goals.
Understanding your debt and making purposeful choices that imbue you with pride and peace are key. Why? Because they help you to remain connected to your debt as well as your money. That’s key, since such a connection keeps you motivated to tackle the problem.
What is the End Goal?
Ask yourself how you want your life to look, and what you should do to get there. For example, are you putting aside monthly savings? Are you following a budget? What goals are you working toward? A new car? A new house? Whatever your goals are, list them.
Also ask yourself whether your money habits have changed. Is your spending or giving more intentional these days? Further, are you experiencing financial stress? Have there been any favorable changes in your physical or mental health since you’ve begun eliminating debt? In addition, when you consider the future now, how do you feel? Are you hopeful?Â
Summary
Once you have a vision of what your life might be like debt free, you then need to determine how to turn that into reality. And remember, if your debt is too much to handle, debt relief may be an option.Â
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