If you’re currently drowning in debt, you may feel completely alone. It’s something that many of us tend to suffer with on our own. US consumer debt is currently over 3 trillion dollars.
That’s Trillion with a “T”
Not only do we not want to burden our loved ones with the worry, but we’re also ashamed that we managed to get that far into debt.
However, it’s going to be important for you to realize that you’re really not alone.
There are so many people out there in the same position as you – and so many more than have managed to get themselves out of that position.
So, if you feel like you’ve not got much more hope left, and you really want to make a change, you’ve found the right post.
We were in the exact same position in 2015. Newlyweds. Great jobs. Mountain of debt.
As of now, we owe nothing but a mortgage and car payments on one car. No credit card debt. No loans. Nothing else.
Here is how to solve your debt problem today.
Tell Someone
The very first thing you have to do here is speak up. If you’ve been carrying the burden for too long, you need to lighten your load a bit.
Speak to someone who you trust. This is important. Because if it’s someone that will make you feel worse about your situation, it won’t help.
The right person will be able to comfort you and help you to stay on track when it comes to making a change. We told each other. That was easy. Two people carry a burden better than one. Logic is helpful.
Face The Facts
Now that someone else knows, it’s also time for you to face the reality of the situation.
Because when you are in debt, and it’s getting out of control, you don’t always know how bad it is.
You may know a rough figure, but that’s not going to be enough if you’re going to change things. You need to know exactly how much you owe, to who, and the rates that you’re paying for everything. When you do, you can then take action. This gets ugly. Maybe you owe $1,000. Maybe you owe $10,000. The number doesn’t matter if you can’t pay it back.
Make a list of all debts. Figure out interest rates if you want.
Create A Plan
From here, you’re then going to want to come up with a plan.
Because trying to get out of debt without one will be so much harder (or even impossible).
With the right debt payment plan, you’ll be able to figure out exactly how you’re going to tackle it.
You can work out what you’ll pay and when so that you know when you’ll be debt-free, and you can keep yourself on track.
Some people like the snowball method. Some prefer to pay their debt off by highest interest rate to lowest interest rate. No method is bad as long as you pay it all off.
I’ll touch on the debt payment methods in a post later this week.
Get Some Help
At this point, you may find that you’re suffering worse than you really need to be. So get yourself some help.
You may not know about it, but you can actually get debt loan relief to help your situation.
You can also speak to your creditors too. Because they may be able to improve your fees to make your situation more manageable.
Control Your Approach To Finance From Now On
You’ll notice that by now, you’re much more on track to taking back control of your debts.
However, you also have to be sure that you don’t get into more debt going forwards, or ever again in the future.
Create a budget and stick to it for a year. This isn’t a diet or short-term fix. This is a lifestyle change.
Stay Rational.
-B&T