How to Handle Debt Stress
The world is in the midst of the worst economic crisis since the Great Depression and many of you are experiencing an inordinate amount of stress and need financial stress relief. Unfortunately, the after affects of the current recession will show up on millions of credit reports in the form of late and/or missed loan payments, loan defaults, and mortgage foreclosures. By now, many of us realize that the current state of the economy, let alone our personal finances, is due to an excessive government spending, job cuts, salary reductions, and an excessive lifestyle. Previously, understanding that by scaling back on expenditures and not living on the edge financially, we could have avoided this crisis, the stress, panic attacks, and anxiety that has along with the current crisis. For many of us this advice, unfortunately, has come too late and most of us have consummated one or more of the following:
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Took equity out on houses.
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Expected an unending rise in home prices.
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Paid for excesses with a credit card.
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Did not save for unexpected expenses or job layoff(s).
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Spent it before we made it.
While many of us have gotten ourselves into serious debt and can’t seem to find a way out, we must now take responsibility, make positive inroads, and pay-off our debt. We do not have to wallow in self-pity or be depressed; we just need to enact the following:
- Take a good look at how much you owe–You are probably better off than you think
- Compare yourself to your ancestors.
- Did they need it?
- What quality of life did they have without it?
- Remember: Poverty is a state of mind, not a situation.
- Track Daily Expenses
- Identify bad spending habits.
- Cut expenses: fast-food, magazines, travel, gifts, and entertainment.
- Pack a lunch for work.
- Avoid Impulse buying.
- Cut out $5 coffee drinks.
- Increase your income.
- Make it, before spending it.
While,it is not easy to get out of debt once you have dug yourself into a hole. Moreover, in today’s economy, there is no guarantee that you will not incur anymore debt in the future. The key is to use common sense so that you do not overindulge in debt and compromise your future. Additionally, by leaving as much money in your pocket after paying debts, taxes, and expenses, you will increase your ability to save and have enough money to meet your financial goals. Lastly, getting out and staying out of debt is one of the best ways to increase your future financial stability. Remember to take ownership of your debts, take action against your debts and look for responsible ways to get out debt and this; I guarantee you, will reduce your stress.
“ Make it a point to do something everyday that you don't want to do. This is the golden rule for aquiring the habit of doing your duty without pain.”