Having a lot of debt can feel like the financial equivalent of being in prison or a financial disease that spreads through one’s financial life. Everyone wants to break free from the clutches of debt, and the stigma attached to it, yet people often overcomplicate the process as their emotions take over, and they, therefore, go into a state of reaction rather than response – meaning they are reactive rather than responsive, and in many ways responsible.
The challenge with debt is that it’s often a slippery slope, as due to the interest and late fees, once you start missing a few payments your financial position can quickly go downhill. It’s understandable that people in debt can feel so overwhelmed they want to keep their head in the sand but this is when things start spinning out of control.
This article, therefore, looks at two fundamental and very simple principles in terms of breaking free from debt.
The idea of consolidating debt through a solution such as https://debtconsolidation.loans/debt-consolidation-loans-bad-credit/ is often a good way to go, in this way, you will now be paying just one manageable monthly amount at a relatively low rate of interest when compared to the exorbitant fees short-term borrowing attracts, or the penalties associated with letting your debt get out of control… another option to consolidate your debt is to put it onto a zero per cent credit card and pay this off each month before the interest-free period is up.
The benefit about debt consolidation is that it can ease the emotional pressure of being pursued for debt, as it is an extremely stressful situation, and often people in debt are being pursued by multiple creditors meaning there can be multiple streams of simultaneous debt collection activity.
One of the best ways to reduce this stress is to consolidate the existing debt into one lump sum in order to get creditors off your back.
The two main benefits to this are that you’re now dealing with one creditor rather than several – and rather than having a number of debts with late payment charges often accruing you now have just one lump of debt with more manageable monthly payments.
In short, a debt consolidation loan can provide a great way to get back on track.
INCREASE YOUR INCOME
The second strategy sounds simple enough, but all too often, we are so focused on debt that it takes over our life… we are focused on debt reduction that we forget to focus our attention on the more positive not of wealth creation strategies (see: https://revnyou.com/10-simple-wealth-creation-strategies)
If you can shift your thinking away from debt and more toward income generation you’ll be in a much better position to get out of debt, and it is a much healthier way to deal with debt, as there are many ways to make an extra income but unless we lift our heads up from looking down at the floor, these opportunities will never enter our consciousness meaning we won’t take the necessary action to break free from debt and start moving toward wealth.