Photo by Kanokpol Prasankhamphaibun
Solutions to solve debt and relieve your stress.
When I was a teenager making good money working after school and weekends, a sagacious family member asked me: “Does money create a hole in your pocket?”
Fortunately, I listened and was able to pay cash for a shiny new red Volkswagen off the showroom floor when I left for college.
So recent trends in personal debt among Americans are eye-catching. Americans are increasingly in debt. Does this sound familiar to you? That’s a killer for a person’s health and lifestyle.
The usual reasons include lack of personal discipline, borrowing too money for college expenses that don’t yield a productive career, and weakening health.
But note the first reason: Many Americans are their own worst enemy because they fail to budget properly.
But note the first reason: Many Americans are their own worst enemy because they fail to budget properly.
Reasons include acquiring too many credit cards and maximizing them out, binge shopping, trying to impress others with new cars or TVs or even on sports betting.
Such spending addictions are hard to fix. But change you must for a happy and healthy life. Simply put, it’s a matter of personal responsibility.
The first steps include deciding to make a right turn such as getting a financial mentor, learning how to manage finances, creating a budget and negotiating payment plans with creditors. Stay disciplined and avoid filing for bankruptcy.
Step-by-step financial strategies:
- Seek expert help. Either find a mentor, or get free, confidential advice and debt management help through credit counseling agencies, such as the National Foundation for Credit Counseling.
- To reduce your stress, know what you owe. Document every balance, minimum monthly payment and interest rates. Start analyzing what could be your tightest-possible budget. Commit to adhering to it.
- To manage unexpected expenses without adding more debt on your credit cards, start an emergency fund of $500 to $1,000.
- To prevent your score from getting worse, set up minimum payments for all your debts. You might have to negotiate with your debt collectors. Strive to refrain from the temptation of filing for bankruptcy that would stay on your record for seven years. Besides, you’ll feel much better by staying strong emotionally by doing the right thing.
- For your repayment strategy, either target the debts with the highest interest rates first, or for immediate emotional relief pay the smallest debts first.
So, listen to your mentor. Organize what you owe. Develop a budget and avoid new charges. As you progress to get out-of-debt, you will begin to feel much, much better.
From the Coach’s Corner, here are more tips on debt:
9 Top Money Tips to Erase Your Debt – Debt is a killer. But if you’re in debt, you’re already feeling horribly about it. So get busy with these nine strategies.
Drowning in Student-Loan Debt? How to Pay it Off in 1 Year – You’re not alone if you’re drowning in student-loan debt. Here’s what you can do to stay afloat.
5 Solutions to Ease the Pain of Your Student Loan Debt – If you’ve had a student loan, chances are you know the pain of trying to repay it. If you’re struggling to pay it off, here are five options.
Debt Consolidation Will Sink You without These 6 Tips –- If you’re not careful in your debt-consolidation plan to bundle your debts for a lower interest rate and minimum payments, you might get into more financial problems. Here are six precautions.
Finance: You’ll Draw Strength to Win by Relying on 22 Values – Whenever a businessperson makes a financial decision that turns out to be productive, it’s based on values using a financial compass — knowing what to do and when to do it. If you use this financial compass with 22 values, you’ll be guided to financial success.
The 6 Values for Your Financial Protection – Debt is the catalyst of all financial woes, says esteemed associate Joey Tamer. Here are her six values to avoid financial traps.
“A journey of a thousand miles begins with a single step”
-Confucius
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