OK, you know how an alcoholic finally comes round to seeing the harm being done to him/herself and the people they care about. Well, perhaps you've finally come round to seeing how your spending habits have been damaging you and you really want to change the way you think about being in debt.
And sometimes it really isn't your fault. People who don't earn enough and have just been scraping by but not managing to do so, a partner or spouse who's been left high and dry with a mountain of the other person's debt or any other reason where you were not responsible , are just some of the situations that can happen to create debt.
Well, the next step in getting out of debt is to get some understanding. What this means is becoming clear about how much you owe, what you spend on, what income you have coming in, what your net worth is, and all this stuff that might seem laughably obvious but is a real blind spot for some people. You have to know what your current situation is because that is a sure way to help you find your way through to the financial direction you want to be in. This will undoubtedly mean ferreting about to find the information but it is going to be worth it in the
long run.
And here is the rest of it. Once you've got all your papers, facts and figures together, then's the time to get help. Let me say right here that I'm not pitching for any particular service. That help could be in the form of a friend or family member who's good with money, a community based advisory service, a financial advisor.
Or even the bank or credit company can help you with managing your money and help you sort out reasonable payments and management of your future finances. What I would say about that though is to first try the more independent services before you resort to the ones to whom you owe the money. At least get an independent overview of the situation. And its amazing how much free advice there is if you look for it. Any Citizen's Advice Bureau will be able to guide you to such advice.
The thing is to not let shame, fear, embarrassment, guilt or lethargy prevent you from seeking the help you need.
Now its time to get control. For some people its lack of control that got them there is the first place. Spending called to them like a siren and they felt powerless to block their ears. Some people can't do it on their own to start with and need someone else to take control for them for example by looking after their money and only allocating them a certain amount each period of time. That's not taking control, but if the need is desperate, that may be where you have to start and then gradually take small steps to building in your own internal controls.
It may mean cutting up those credit cards. It could be having to pay a forfeit every time you go over your limit like doing family or community chores or any one of other creative ways to make it more painful. And if the stick approach didn't work for you, try the carrot. Reward yourself in a non monetary way for sticking to your limits. And again, I'd say be as creative as you could in finding ways to do this. If you are a person with demonstrably little control, its not going to be easy at first but over time you can train yourself to do this.
Finally its about getting a plan that's going to be workable for you and sticking to it. Develop awareness. Keep an account of everything you spend. Pay off all charges for the previous month's expenditure so you don't have to keep paying new interest. Decide how much money you can reasonably use to pay off the debt each week/month and use it on all your highest interest debts. A financial adviser can help with the plan as well as helping you to write to creditors to make the best arrangements for payment. I'm always amazed at what some of these people can help their clients achieve.
Lets face it, at the end of the day debt is a millstone round the neck of anyone who's got it and if you want to be successful financially, you have to be wise about what is good and what is bad debt and work at controlling the bad debt. For people who've found the New Year has ushered in some stark realities regarding debt, one of the best resolution you can make is to seek out whatever helpful resources there are out there to help you get control over it. But please steer clear of loan sharks.
Blessings for today.
1. I am blessed to be in good health. That has got to be a no. 1 priority for me and I am grateful for the wellness I feel.
2. For the good food in my belly today, I am grateful. And for knowing where my next meal is coming from.
3 I appreciate the love and support within my family, and for all the people who at this time of special need are caring for my sister with all that is required of them.
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