Overcome Your Fear of Debt and Become Debt Free

Debt can be a very scary, depressing and demoralising subject for many. Acquiring debt is so easy today with credit cards and easy loan schemes. Paying them off is often the hardest part. Mounting debts can create fear in the hearts of the debtors and affect their life in more ways than one. It is essential that you address the fear of debt and overcome it.

Fear of debt is very dangerous as it can rob you off your sanity and peace. This article will discuss the problem of debts and how you can overcome it.

How did you get there?

A small amount of debt can grow into a large sum, and you will still be thinking how you got there. People who are already in debt have the tendency to pile on it by borrowing more money. Inefficient management of money and not taking control of your finances are some of the reasons you fall into debt.

Student loans and credit card loans are one of the most common types of debts you get to see. Paying them becomes even more difficult if they don’t have the job or don’t make enough money. But, when debt is due you have to pay it whether you have the money or not. As the sum grows, anxiety and fear can engulf you. Soon, you will be avoiding phone calls fearing it is one of your creditors. You would ignore the bills until they become cause for a huge stress.

How it Affect you?

Debt can be the reason for stress, anxiety and depression. It can take a toll on your health, life and the fear of debt can keep you on the edge most of the time. So, it’s important to address the issue and take steps before the fear of mounting debt becomes too dangerous.

How to Overcome the Fear of Debt

If you suffer from the fear of debt, it’s now time to take steps to overcome the problems. Fortunately, there are effective strategies and tips that can help you through the process.

Here are some of the things you can do:

Create a Plan

The first step to overcoming the fear of debt is creating a plan. A plan or strategy is essential to carve out steps you can take to bring your finances under control. The journey of paying off all your debt can be long and tedious. So, you need a road-map to make the process easy and keep you focused on your goal.

First, you need to open up your bills, gather your account information and calculate how much of debt you are in. Secondly, stop avoiding the calls and start taking responsibilities. Talk to your creditors, and find out a way to pay off your debts that is most suited to your current financial situations. It will also include steps you need to take to keep the expenses under control.

Gather up the courage to face the debts and think of a plan that can help you. You can also take the help of a professional financial expert. Whatever you do, make sure you have a plan of attack to overcome the fear of debt.

Approaching the Creditors

Now, this step can be embarrassing, but it is important that you make contact with your creditors. It’s natural to feel embarrassed. Unless you contact them you cannot negotiate your debt payment agreement.

The fear of what the other person on the phone will say to you can be a big hurdle in solving your problem. Remember that there are many people like you who are facing such problems. Be polite in your conversation. Being apologetic can help in making the creditors feel that you are serious about paying off the debts.

You also need to be firm when agreeing to a term. Their initial offer may not be ideal for you. Saying no is important so that you can make them to agree to a term that will be acceptable to you without making you broke.  

Making the Effort

The only way to conquer the fear of debt is to face them head-on. Ignoring your debts and bills won’t make them go. You need to create a plan to overcome it. Explain your situation to the creditors. You will be surprised how reasonable the creditors can be.

Once you have agreed upon the plan, it’s now time to implement your strategies. Getting started on your plan will boost your confidence and help you overcome your fear of the debt. The first thing you need to do is control your expenses. Cut down on expenses that you don’t necessarily need. Food, bill, rent, and other important things come first. Eating out, luxury items shouldn’t be in your priority list as of now.

And, if you fail to make the monthly or weekly payment of amount you have agreed-on, don’t panic. Again, explain the situation to the creditors and try not to fall back on old pattern of avoiding the debts.

The Bottom-line

In order to overcome the fear of debt, you will need to be realistic about it. Avoiding the problem will not help you, facing them will. So, make sure that you call your creditors and let them know you are willing to make an effort.