How to Handle Debt and Get Back on Track

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How to Handle Debt

We live in a world where debt is part and parcel of modern culture. If you put it in its simplest terms, debt is money owed by one party to another. There’s nothing wrong with having debt; it’s how you handle it that matters.

Do your debts feel like a heavy burden? Does your take-home pay not go far enough? Are you lying awake every night, wondering how you’re going to repay the amounts you owe? Have you been sticking your head in the sand for so long that you don’t know what to do? Finding yourself in debt can be very stressful, impacting your relationships and your everyday life. All the worry is unnecessary, however, because there are viable solutions. We’re about to share some valuable lessons. Read to the end, and you’ll be able to manage your finances better and handle your debt.  

Debt Comes in a Variety of Disguises

There are two categories of debt: secured and unsecured. 

Secured Debt

If you have secured debt, it means you’ve pledged an asset as collateral for the loan. Two common examples of this type of loan are a mortgage and an auto loan. Should you fail to keep up your repayments, the lender will repossess the car or foreclose on your house.

Unsecured Debt

No asset is used to back unsecured debt. A typical example of unsecured debt is a credit card. Don’t be fooled into thinking there are no consequences if you fail to keep up your repayments. The lender has a few options. 

One of the most common solutions is for the lender to sell the debt to a third-party debt collector. The ball is then in their court for collecting debt payments. A debt collector might hound you with telephone calls and letters. They might also sue you for payment. If your debt ends up in the courts, the result could be a court judgment.

The judgment would mandate that a percentage of your income is withheld for repaying your debt. This process is called wage garnishment and stays in place until the debt is paid off unless both parties agree on another solution.  

Within these two categories, there is a range of different types of debt. Recognizing and understanding these types is an essential step in learning how to handle them.

Credit Card Debt

Credit card debt happens to be one of the most common forms of debt, and often the most expensive. A recent news report from CNBC put the total credit card debt in America at a staggering $1 trillion. The U.S. consumer is carrying more debt than ever before, and staying on top of payments is becoming increasingly more difficult. With the average APR (annual percentage rate) creeping into the 20s, not paying your balance in full every month is expensive. 

If you’re facing ever-increasing credit card debt, you have several options. A debt management plan created with the help of a non-profit counseling agency is one option. Consolidating your debts or taking advantage of a 0 percent intro APR balance transfer credit card are two further options. Lastly, a bankruptcy attorney may be able to provide you with some helpful advice.  

Personal Loans

There are numerous reasons why you might take out a personal loan. For capital to start a new business, to help pay for your home remodeling project, or to pay for a once-in-a-lifetime vacation are just a few examples. People also take out personal loans to consolidate credit card debt. Terms for a personal loan range from two to five years, sometimes even longer. Interest rates vary; they usually range from 5 to 36 percent. 

If you’re struggling to keep up with your loan repayments, you must talk to your lender or ask for help. Your lender might offer a hardship plan or allow you to defer payments. A non-profit credit counselor provides free help and advice. With their help, you’ll learn how to manage your budget better.   

Mortgage

The ideal situation for any homeowner is to own their home mortgage-free. According to an article in Bloomberg, 37 percent of American homes are free and clear of a mortgage. If you live in one of the 63 percent of households that isn’t, having such a secured loan hanging over your head can be stressful. 

Anyone struggling to keep up with the mortgage repayments has the option of refinancing. More importantly, you should discuss any problems you have with your lender.   

Car Loans

An auto loan is a form of secured debt, just like a mortgage. If you don’t repay your loan, the lender is allowed to repossess the car because it is kept as collateral. Car loan terms are getting longer; people are borrowing more because the price of vehicles is increasing, which in turn makes a car loan more expensive. 

If your budget is tight and you’re struggling to make the repayments, you might be able to refinance the loan. Another option is to downsize your car to one that costs less. 

Medical Bill Debt

Even with the best health insurance, it’s still possible to find yourself with medical bill debt. Medical procedures, surgery, and even a visit to the doctor can be expensive. Staying on top of medical bills can be a struggle, and there’s no obvious way to handle such debt. 

It is, however, viable to set up a payment plan, use a medical credit card, or use the services of a medical bill advocate. One thing you should avoid, if at all possible, is to put your bills on a credit card. A medical provider isn’t going to charge you interest, whereas placing the debt on a credit card could end up being more expensive.   

Student Loans

The number of people graduating from college with student loan debt is increasing, and this debt can be sizeable. Estimates put a figure of $1.53 trillion on the amount Americans currently own in student loan debt. For many of these people, the debt is more than 10 years old. The average student loan debt amount is more than $37,000 — not the best way to start adulthood. 

There are a variety of student loan types, including federal and private. If you’re struggling with your student loan repayments, help is available. Your student loan servicer will be able to discuss relief options. Income-driven repayment is another option. It’s also possible to apply for forgiveness if you’re eligible.  

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Business Debt

Whether you’re starting a business or it’s been running for several years, debt is often an essential element. There are many reasons why business owners take out a loan or business line of credit. They might need to purchase equipment or property, or the business might need to hire new employees.  

Finding yourself with too much debt, however, can be crippling for any business. The obvious answer for a business owner with unmanageable debt is to look for ways to boost sales and increase the business’s income. Refinancing and consolidation are two other options.  

Collections Accounts

A collections account is a loan that’s been turned over to a third-party debt collection agency. A lender will use this option when a borrower falls behind or stops making payments. The collection agency then takes over responsibility for the debt and collects any payments. 

Debt collection agencies can be ruthless when demanding payments, and it can be a very stressful situation in which to find yourself. Should this happen to you, it pays to know your debt collection rights. The Fair Debt Collection Practices Act (FDCPA) is a federal law that puts boundaries on the performance and procedures of third-party debt collectors. It pays to know where you stand and what these companies are allowed to do. 

How to Tell Whether You’ve Got Too Much Debt

If you have balances with a couple of credit card companies, a personal loan you took out to pay for a recent vacation, a mortgage, and a car loan — is that too much? It’s a difficult question to answer because everyone’s circumstances are different. There are, however, specific warning signs that indicate it’s time to look for debt management help. These signs include:

  • Problems paying your bills on time.
  • You keep receiving past due notices or collection agency calls.
  • You’re always living in your overdraft or line of credit.
  • You’ve been staying awake at night stressing about your debt owed.
  • You’re unable to clear your credit card balances in full every month.
  • Because of your financial worries, you’re impulse spending.
  • You’re hiding your debts or spending habits from your partner.
  • The bills are stacking up because you’re unable to pay them.
  • A consolidating loan request has been turned down.
  • You don’t have a budget or spending plan in place.
  • It feels like you’ll never get out of debt, and the situation is hopeless.

If you’re not experiencing any of these warning signs, it doesn’t necessarily mean the amount of debt you’ve got is OK. Every situation is different, so take an honest look at your finances. You can start with the following tools.

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Your Debt-to-Income Ratio

Your debt-to-income ratio is a figure you can use to determine whether you have too much debt to handle without any additional help. Aim for your debt-to-income ratio to be no more than 40 percent. To work it out, you divide the total amount of your debts by your total income. Make sure you include all obligations: mortgage, personal loans, payday loans, credit card debt, medical bills, collections, and tax liens or unpaid judgments.

If the calculated figure is less than 15 percent, there are several methods you can use to help you handle your debt. These methods include debt avalanche or a debt snowball

When your debt-to-income ratio is between 15 and 39 percent, it may be helpful for you to contact a non-profit credit/debt counseling agency. 

A debt-to-income ratio of more than 40 percent means you’re in the high-risk category. A bankruptcy attorney will be able to offer you advice.  

How to Handle Debt

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Where to Get Help When You’ve Got Too Much Debt

Several different organizations can offer help. Credit counseling services are available in many different places. A counselor can discuss your financial situation with you and develop a personalized plan. They can also help you learn how to build a budget. You can find credit counseling services at:

  • Non-profit agencies
  • Religious organizations
  • Credit unions
  • Extension offices

These services might be free, or at least available at a low cost. Always check that an organization is accredited by either the NFCC (National Foundation for Credit Counseling) or the FCAA (Financial Counseling Association of America). 

If you’re a member of the military, help is available under the Servicemembers Civil Relief Act (SCRA). You may be eligible for interest rates at a reduced level on mortgages and credit card debts. SCRA also offers protection from eviction and a delay on civil court actions. 

As well as seeking professional help, there are many things you can do to help yourself.

Is Debt Consolidation an Option for You?

Do you have a range of different loans and credit cards?

Are you struggling to keep up with all the payments you’ve got to make? Consolidating your debts into one easy to manage amount might be the answer. 

Debt consolidation is a way by which you can combine several or all of your debts into one. You can do this with the help of a debt consolidation loan or balance transfer card. Two slightly more risky options are home equity or a 401(k) loan.

Whichever way you choose to consolidate your debts, the ultimate aim is to have a lower interest rate and payments. Bonuses include the fact that you’ll only have one amount to worry about and be able to pay off your debt much quicker.

How Does Debt Consolidation Work?

When your application for a debt consolidation loan is accepted, you receive a lump sum that allows you to pay your debts. You have to repay the original creditor’s debts in full. However, you now have just one new loan to worry about, with one single payment, loan term, and interest rate. Rather than worrying about different loan payments and debts, you only have one. 

To get the best deal for your debt consolidation loan, you need a good credit score to qualify for a low interest rate.

Different Types of Debt Consolidation

When consolidating loans, people tend to choose a personal loan or credit card with a 0 percent APR on balance transfers. The other choices are a home equity loan or a 401(k) loan. 

Personal Loan

The most common choice for people looking to consolidate their debts is a personal loan. Repayment times vary from one to seven years. The interest rates offered can sometimes be lower than credit card interest rates. As a general guide, expect to pay between 10 and 32 percent, depending on your credit score.

A personal loan is an unsecured debt; you won’t need any collateral. If you recall, that means should you default on the loan, the lender can’t repossess any physical property of yours.

Balance Transfer 

Balance transfer credit cards generally come with a promotional offer of 0 percent APR (annual percentage rate) on balance transfers. Be careful, though, because this is usually for a limited period. The length varies from a few months to almost two years. Transfer your debts to this type of credit card, and you’ll pay no interest. However, you have to pay off the balance before the end of the promotional period. 

If you fail to repay the debt by the end of the offer period, you’ll pay a higher interest rate on the remaining balance. Alternatively, there’s always the option of transferring the balance to another 0 percent APR balance transfer credit card to reset the countdown clock. 

Home Equity Loan

A home equity loan uses the equity in your home as security for the debt. As such, your home is at risk should you default on the loan. The interest rate for this type of loan is often lower because your home is the collateral. 

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401(k) Loan

A 401(k) loan is not technically a loan. It’s more a way of accessing a portion of your own retirement plan money. Generally, the amount is up to either $50,000 or 50 percent of the asset. It’s also on a tax-free basis, but there are penalties for withdrawing funds before a certain age. Using this type of loan for consolidating debt is complicated — say if you lose your job, for example, you may have to pay the balance in full.   

Now you know the types of consolidating loans available; let’s look at the pros and cons.   

The Advantages of Consolidating Your Debt

  • The possibility of a lower interest rate
  • Number of monthly payments will be less
  • You’ll be able to pay off your debt much quicker
  • A consolidation loan shouldn’t damage your credit history
  • It’s possible to complete the process on your own

The Downside of Debt Consolidation

  • There’s little point in consolidating your debt if you haven’t fixed the reason why you found yourself in debt
  • You have to pay the full amount of the debt. Negotiating a smaller amount is not possible
  • Loan origination fees, balance transfer fees, and other costs can make this option expensive

If you’ve decided that the negatives outweigh the positives and a debt consolidation loan is not the answer for you, there are a couple of alternatives.

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A Debt Management Plan

A debt management plan is a way of negotiating a way of repaying your debts. You have to contact your creditors and agree on a way you can repay your debt, all without lowering the balance owed. A solution is often better negotiated with the help of a credit counseling service, although you can do it on your own

If you use the services of a credit counselor, once the debts have been negotiated, you send one monthly payment that your counselor distributes on your behalf. Credit counseling is not an expensive service because most credit counseling services are not-for-profit.

Having a debt management plan won’t affect your credit score, even if you make all your payments on time. However, it can impact your score in another way. Sometimes, a credit counseling agency arranges for a note to be put on the account in your credit report. Any potential lenders will see you’ve got a debt management plan, indicating you’re receiving help paying off your loans. 

Enroll in a debt management plan, and all your affected accounts are closed. Such actions do not look good on your credit report.

Debt Settlement

Debt settlement is something utterly different from debt consolidation or a debt management plan. Again, this is something you can do yourself. You can also use the services of a company that specializes in debt settlements. 

With debt settlement, it’s a case of negotiating the payment of a lump sum, usually less than the amount you owe. Once you make this payment, the debt is considered repaid in full. It sounds like a very attractive way to handle your debt; however, there are some negative consequences.

You may be asked to stop making payments for a settlement to be negotiated. The reason is creditors tend not to be very willing to negotiate if you’re paying at least the minimum monthly payment. If you stop making payments, it negatively impacts your credit score. A debt settlement also stays on your credit report for seven years, affecting your credit score for all that time.

Another downside of this solution is the fee a debt settlement company will charge. On top of that fee, you’ll also be paying late fees, interest, and possibly even penalty APRs for not making your payments. All of these charges can potentially increase your debt. 

There’s one more way you can eliminate your debt.

Bankruptcy

One last option to eliminate your debt is by filing for bankruptcy. There are two types: Chapter 7 bankruptcy and Chapter 13 bankruptcy. 

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is a way of eliminating debt, but the process is complicated. There is also the question of qualifying. You might not qualify if:

  • Your income exceeds the average income for the state where you live.
  • You’ve had the debt discharged through bankruptcy in the last six to eight years.
  • You qualify for Chapter 13 bankruptcy, by your income, expenses, and debt.
  • You have attempted to defraud the bankruptcy court or your creditors.

Chapter 13 Bankruptcy 

With Chapter 13 bankruptcy, it’s possible to reorganize your debt without handing over any property. You follow your repayment plan, and your debts are repaid over three to five years. Certain debts, like child support payments and taxes, have to be repaid in full. Payments for secured debts also have to be paid. If there is any disposable income left, you make a reasonable effort to make payments on unsecured debts. 

The ideal scenario is to not find yourself in such a situation that you need help managing your debts. Let’s share some helpful tips and advice.

How to Handle Debt

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How to Manage Your Debt, However Much You Owe

The amount of debt you have is irrelevant. What matters most is learning how to manage it. If the amount of debt you have is small, paying your bills on time means the debt won’t get out of control. However, if your debt is more substantial, managing it effectively means working out how to pay on each of your debts.

If you want to manage your debt successfully, you need to take specific steps.

Step 1 – Know Who Your Creditors Are and How Much You Owe

Do you know how much debt you’ve got, or are you blindly paying your monthly payments? If you’ve got a list of all your debts, you’ll be able to see the bigger picture and always be aware of where you stand. Sit down and take the time to make a list of the amounts. Include the names of the creditors and when the monthly payments are due.  

You can check the details by requesting your credit reports. Did you know you’re allowed to request a credit report from each of the credit bureaus once a year? The even better news is that it’s free.

Remember to look at the list periodically. As you pay your bills, some of the details change. You need to update your list as your debt changes. 

Step 2 – Pay Your Bills on Time Every Month

Aim to pay your bills on time every month. Paying late makes it harder to pay off your debt because late fees will be added to your invoice. It’s also very likely that if you miss two payments in a row, the charges will increase together with the interest rate.

To help you remember to make payments, add notes in the calendar system of your computer or smartphone. Use alerts to remind you to make the payments. In case you miss a payment, don’t wait until the next payment is due to take action. As soon as you realize you’re late, send your payment. 

Step 3 – Use a Bill Payment Calendar

There are some excellent tools and apps to use if you need to be reminded about your payments. Alternatively, use a printed calendar and stick it on the wall where you’ll notice it. Make a note of the dates that payments are due and how much they are. You can also make a note of the day you expect to get paid. 

Step 4 – Make the Minimum Payments

If money is tight and you’re struggling to make your debt repayments, aim to make at least the minimum amount. It’s not the best scenario, but it will stop the debt from growing too quickly and keep your account in good standing. 

Step 5 – Decide Which Debts to Pay Off First

The best strategy is to pay off debt with the highest interest rate first. Credit cards tend to have higher interest rates than other forms of debt. If you’ve got several credit cards, those with the highest interest rate should get priority. 

Another strategy is to pay off the debt with the lowest balance first. 

Step 6 – Make Use of an Emergency Fund

If you’ve got an emergency fund, there’s no need to go into debt to cover any unexpected expenses. It’s not easy to create a small emergency fund if you’re also trying to reduce your debt. It is, however, possible. Some of the ways you can do it will be looked at in the next section.

Step 7 – Plan Better with the Help of a Monthly Budget

If you’ve got a budget, it helps ensure you have enough money to cover your monthly expenses. Planning also means you can take action if you’re going to have problems in the future paying your bills.

With a budget, you can make spending plans for when your expenses are covered. You might also decide to use your extra money to pay off some of your debt. 

Step 8 – Recognize When You Need Help

There’s nothing to be ashamed about if you need help managing your finances. Thousands, possibly even millions, of people find themselves in the same boat. The good news is that there’s lots of help available. Debt relief companies and credit counseling agencies can all help you find a solution to your debt problems. In the United Kingdom, there is an organization called the StepChange Debt Charity that offers free expert debt advice. In the U.S., there is the NFCC.   

If you think you’ve got a problem with spending, reach out to an organization known as Debtors Anonymous.

How to Manage Your Debt and Save Money

Balancing paying off debt and saving can be challenging. It is, however, possible. Here are some tips to help you maximize your cash flow, better manage your debt, and save money at the same time.

Stick to Your Budget

The importance of creating a budget has already been mentioned. What’s also important is sticking to it. One of the easiest and most effective ways to better manage your debt is to create a budget. It also helps you save money for the future. It won’t help, however, if you never refer to the document again and don’t learn any lessons from the information it reveals. 

A budget should be something that evolves. It should also be something you stick to.

Stop Paying for Things You Don’t Need or Use

When you create your budget, look at some of the expenses on your list. Do you, for example, need to keep paying for a gym membership you never use? What about all the channels you pay for with your cable TV package? Do you need to be able to watch hundreds of different channels, when there are only a few of them you watch regularly? What about all the other services you’re paying for monthly? How many of them do you use, and how many could you do without?

If you’re not using the services or taking full advantage of them, consider canceling the subscription and save the money instead.

Make Money from the Things You Don’t Need or Use

Take a look around your home, paying close attention to all those items gathering dust because you never use them. Perhaps it’s all those items of clothing hanging in the closet you’ve not worn for years, or furniture in the garage you can’t have in your home because there’s no room. Maybe it’s even the kids’ old toys they don’t play with anymore. How many of the gadgets in your kitchen do you use? Put all these items to better use by selling them online. Use the funds to pay down your debt, or squirrel away in an emergency fund. 

Think Before You Buy

Before you make a purchase, remember all the items you’ve recently sold. Also, think about whether you could use the money you’re about to spend in a better way. Do you need the latest smartphone, or could that money be put in your emergency fund? Could it help pay for your child’s college education? 

Lower Your Credit Limits

Think about lowering the limits on your credit cards. If the temptation isn’t there, it has to be a benefit.  

Learn How to Do It Yourself

The next time you spend money on your home or on a service, consider whether you’re paying for something you could do yourself. Take home renovation, for example. There are aspects of this type of project you could attempt yourself. YouTube is a great place to look for tutorials, tips, and general inspiration. Do you pay someone to mow your lawn or do the landscaping of your garden? You might not have a green thumb, but most gardening jobs don’t need a lot of knowledge or experience. 

Make Use of Loyalty Points, Coupons, Discounts, and Special Offers

Do you use a loyalty or rewards card? Don’t forget to take advantage of the rewards you’ve earned. There are also online sites that hand out coupons and offer discount rates on a variety of everyday items. Groupon is one example

Never Pay the Full Price

Why not wait until the sales to do some of your shopping? For bigger purchases, such as furniture, appliances, and electronics, a sale is excellent for bagging a bargain. Another option is to comparison shop online. Have you ever considered haggling with the sales rep in the store? Depending on the item, there may be some wiggle room for lowering the price, so don’t be embarrassed to negotiate. 

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Dealing with Debt Stress and Getting Debt Stress Relief

Being in debt affects more than just your financial well-being. If you’ve got problems with money, it impacts your relationships and your physical and emotional health. For this reason, it’s essential to understand how to deal with your debt. Understanding how to deal with debt stress is also crucial. Debt and stress go together like peas and carrots, bread and butter, a horse and carriage, and any other analogy you might want to add. 

Fall behind on your payments, and your creditors are soon going to be in touch. Whether it’s letters or telephone calls, the result is the same. You feel overwhelmed, sick with worry, and wonder whether you’ll ever get back on track with your finances. 

If this sounds very familiar, keep reading. We’re about to share some strategies to help you get through this period in your life and find a way out the other side. Even if you’re not in this situation, these tips are worth reading because you never know what’s around the corner. Debt stress is something that can strike at any time. There are no limits to its reach. 

Debt and Your Health

Debt stress can manifest itself in a variety of ways. You might experience difficulty concentrating, a change in your eating habits, or sleepless nights. These are all symptoms of a phenomenon known as debt stress syndrome. Research has been done regarding the effects of debt on your health. It’s no surprise that debt increases your stress levels and impacts your health.

Prolonged stress concerning struggling with debt has often been linked to obesity, diabetes, high blood pressure, and elevated cholesterol levels. It can also jeopardize your immune system, leaving you more susceptible to illnesses.

It’s not just your physical health that can be affected; your emotional and mental health is also at risk. Research has shown people dealing with debt are more likely to suffer from depression than those who are not. Another study highlighted the fact that people who are struggling with their finances were twice as likely to experience mental health problems such as depression, anxiety, and thoughts of self-harm. 

You don’t have to feel your money problems are the end of the world. Here are some things you can do to help you get your finances under control and get some debt stress relief.

Get Your Head Out of the Sand and Face Your Debt Problems Head-On

If you’re experiencing any of the physical symptoms mentioned previously, the first — and most crucial — step to take is to acknowledge there’s a problem. Sticking your head in the sand and hoping your debt will magically disappear isn’t doing you any favors. Ignoring the fact that there’s a problem is only going to make your situation worse. 

It’s time to be honest and open with yourself and your partner if you’ve got one. Take a deep breath and go through your financial paperwork together. Put together a list of all your creditors, along with how much you owe. The total amount of your debt might come as a surprise, but it’s something you’ve got to face if you want to move forward. 

Make a Plan to Pay Off Your Outstanding Debt

Knowing how much you owe and to who puts you in a good position for making a plan to pay off your debt. Making a plan is going to ease the stress you’re feeling. Knowing there’s a light at the end of the tunnel, and that your debts are going to be repaid, eases the emotional and mental burden. You’re also going to feel more hopeful and motivated. 

Part of creating your plan is to prioritize your debts. You have to decide which debts you want to pay off first. Everyone’s priorities will be different. You might decide you want to pay off the debts with the highest interest rates first. This means you’ll be making minimum payments for the debts with the lowest interest rates and maximizing payments for your debts with the highest interest. 

Another approach is to pay off your smaller debts first because this makes you feel you’re making progress sooner. It’s called the snowball method, and for some people, it’s the encouragement and motivation they need. 

At this point, there’s the option of seeking help from an accredited, non-profit credit counselor. They’ll be able to help you create a budget and a plan for paying down your debts.    

Identify Your Spending Habits and Make the Necessary Changes

A popular way for people to deal with stress is to indulge in some retail therapy, but this is not the kind of treatment you need if debt is what’s causing your stress. Buying something to make yourself feel better might work in the short-term, but such feelings of happiness are temporary. All too quickly, your spending will get out of control and only compound your debt problem. 

It’s essential you recognize whether you are an emotional shopper and do something about it. Do you, for example, reach for your credit card when you’re feeling low? There are far better ways to make yourself feel better. A bonus will be that you’re learning to manage and spend your money in more beneficial ways. 

Next time you feel the need to spend some money, think about what’s driving you. Do you need something, or are you pandering to your emotions? Rather than hitting the mall when you’re feeling low, take a walk in the countryside and enjoy the beautiful surroundings. If there’s something that’s bothering you, don’t spend hours perusing the online shopping websites. Go and talk to a friend. 

Look After Yourself

If you’re feeling stressed, it’s likely you’ve not been taking good care of yourself. Devoting all your time and energy to finding a solution to your problems isn’t doing your well-being any good. It’s essential, but not if it means you’re neglecting your health.

No matter how stressed you are about money, take time out to relax, enjoy yourself, and do something to take your mind off your worries. There are many things you can do to relax, even when your budget is limited. Take a walk in the park, read a book, visit friends, or start journaling.

One important thing to remember is not to beat yourself up because of your financial situation. Being in debt is stressful enough; punishing yourself isn’t going to help. It is possible to manage debt stress. Include moderate exercise in your daily routine. Don’t forget about your downtime, and make sure you eat a healthy diet. Start taking care of yourself, and you’ll be amazed at how much better it makes you feel.

Don’t Be Embarrassed About Asking for Help

Debt is not a subject most people are happy discussing. It’s a burden you might want to keep to yourself. The only result of these actions is that you end up living in a constant state of worry and fear. Both of which are going to affect your physical and mental health. Not only that, your performance at work, personal relationships, and your day-to-day life all suffer. 

You might think that help is unavailable, but you couldn’t be further from the truth. There are countless organizations set up expressly to help people in your situation. Getting in touch with an accredited, non-profit credit counseling service might be the best thing you can do. 

When your finances take a turn for the worse, don’t think of it as a mountain you can’t climb. Knowing how to handle your debt is an important lesson to learn. Unfortunately, they don’t teach you about it in school or college. However, now that you’ve reached the end of this article, you’re better prepared to make the right decisions.

Are You Struggling With Debt?

We hope the information we’ve provided will prove useful to you, either immediately or sometime in the future. If there’s some vital piece of information we’ve missed, please get in touch and let us know. We’d also love to hear from you if our advice was helpful in any way. Struggling with debt shouldn’t be something you have to do alone. With all the right information, it’s a situation you can learn to handle. Before you know it, you’ll be living debt-free and confident in the knowledge that you’re not going to let it happen to you again. 

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