Debt is very stressful, and it’s pretty easy to get yourself into financial problems if you don’t plan your finances ahead of time and learn to put money away in savings for emergencies and large purchases.
In 2014, studies showed that 40 million Americans had college debt. While college debt is one of the most common forms of debt, you may also have medical debt, credit card debt, or even money owed to other places.
Once you rack up a lot of debt, it can ruin your credit rating and credit score and you may find it difficult to buy a home (or even rent one), buy a car, or get credit for anything. The inability to do things because of your poor credit can add to your already mounting stress.
Start By Looking At Your Debt
What kind of debt do you have? How much interest are you paying on it? Start off by making a list of your debts. Take some time to look up your credit report so that you can see who is on there, and who is in negative on there. Get together all of you recent statements as well.
Once you’ve gotten everything together you can get a better idea of what you’re working with and start to work on a plan for paying off your debt.
Make A Pay Off Plan
If you have bills that have been turned into collection agencies you might be able to get a deal on your total sum if you can pay a lump sum off immediately. You’ll sometimes get offer like this in the mail. You may owe $1,000, but if you pay $775 now they’ll wave the rest.
For bills that have not gone into collection, you’ll want to make your minimum payments (at least) on time. If you can’t afford to you can try to get minimum payments lowered or look into get help from a debt counseling agency (this should always be a last resort).
Remember You Don’t Have To Pay It All Over Night
It doesn’t matter what anyone tells you, you’re still going to be stressed about your debt. Just remember, you didn’t go into debt over night so you aren’t going to have to have it paid off over night either, and that is OK.
Once you start getting some of your debts paid off your credit score will already likely start to rise some, just don’t jump right back into more debt right away. Take your time and work on getting your stuff paid off, in whatever time it takes you.
Find Ways To Ease Your Stress
If your debt stress starts to get to you, take a little money off the side (not using a credit card) and use it towards some stress relieving therapy. There are some things you can do that don’t cost a lot of extra money that will add more stress and debt.
Try learning yoga and using that as a way to relieve your stress. You can also try meditation. Massage is also another great alternative for stress therapy. According to a recent post on the Earthlite blog, a company that specializes in massage products, massage therapy can be life changing for some people. For you, that change would be less stress.
Avoid Further Debt
Your final step in relief of debt is to refrain for putting yourself in further debt. once you are able to get credit cards again it doesn’t mean you need them. Maybe have one for emergencies, but don’t have one to use on a day to day basis. You’ll only be asking to gain your debt back.
Only buy things that you can afford to pay cash for, and always pay your bills in full and on time.
Before you know it you’ll be a pro and debt will be but a distant memory!