Finances & Money

What to Do When Debt Becomes Overwhelming

Debt can become overwhelming very quickly. Especially if you let it get out of control. It finds ways to seep into your everyday life, affecting your relationships and your mentality. If you have a family, you may feel defeated or that you let them down. If you are on your own, maybe your feeling deflated and wondered how you’d live a successful life.

Debt has a way of playing with our mind and putting guilt on our shoulders. But there are solutions available if you find yourself this deep in debt. It takes time and dedication, but small steps will show you that you can take care of your debt and free up your financial wellbeing.

Has your debt become overwhelming? Here are a few tips on how to get yourself out of this state and start taking control of your finances.

Set Up Goals

Whether they are short term, long term, or a mix of both, set yourself goals to achieve. Obviously, the end goal is to be debt free. But having just that as your goal is intimidating and not setting yourself up for success.

Instead, break down that overall goal into multiple small ones. Start by slimming down certain expenses like eating out. Once you achieve your goal and you see the extra money available, start working towards another one. At the same time, pick one debt, the one with the highest interest rates is a good starting point, and have that as your long-term goal. Setting up multiple goals that are attainable will help motivate you and keep you on track.

Avoid Creating New Debt

What got you into your debt in the first place? If it is credit cards, avoid using them. Or get yourself in the mindset of only charging the card when you know you can afford it (almost like a debit card). The purpose right now is to pay off as much of your debt as quickly as possible. So if you keep spending, you won’t make it very far.

Have a Support System

Creating a support system doesn’t mean getting people to pay your debt for you. Rather, it is good to have people you trust to talk to about your struggles with debt. More than likely they have gone through, or are going through what you are right now. Don’t let the stress become overwhelming by dealing with it on your own.

Seek Professional Help

If you are at the point where you cannot make any headway, it may be time to speak with a financial advisor about different options available. Something like an Individual Voluntary Arrangement for debt may be the option for you. It is a legal binding agreement between you and any creditors you owe money to. The purpose is to help you pay off as much debt as possible in the most affording way. IVA debt payments are set up in order to pay everything off without being a big burden

There are ways to get your financial life under control if it becomes too overwhelming. No matter the size of step you take, as long as you are moving forward, there will come an endpoint with your debt.

 

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Susan Paige

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