How To Take Charge Of Your Debt Problem

Debt has been described as a double-edged sword. Use it well and it becomes a powerful source of leverage. Misuse it and watch your life disintegrate before your very eyes.

Countless families have been torn apart because of debt, and its related problems.

In some cases debt brings about feelings of failure, a lack of self-esteem, loss of respect from friends and family, and stress that builds as a result of recovery calls from creditors or debt collectors.

In this article, we are going to look at three questions, the answers to which could help you decide how to take charge of your debt problem.

1. Why are you in debt?

This is the first and most important question that you need to ask yourself, since there are various causes that lead to an increased debt load.

These may include: spending more than you earn, marriage, a new child, divorce, buying a new home, death of the bread-winner in a family, job loss, and medical bills that exceed medical insurance limits.

Until you understand why you are in debt, you will not be able to apply the right debt reduction strategies to your particular situation.

2. How much debt do you carry?

The next question to ask yourself is how much debt you carry. This is because awareness always comes before change.

Many people who are highly indebted do not want to add up all their debt because the size of their debt problem scares them.

Unfortunately when it comes to debt, ignorance is not bliss.

Once you know how much debt you have, you can establish a limit against which you can deliberately put an end to borrowing, and start aggressively paying back what you owe.

3. Do you have a clear debt repayment plan?

Once you have established how much debt you have, only then can you come up with a debt repayment plan. Keep in mind that your debt repayment plan has to be workable.

A solid repayment plan is based on your willingness to repay your debts and your repayment capacity.

You must be willing to repay your debts even though you may not have the means or the capacity to do so.

Once you put your plan into action, you will gradually pay off what you owe for as long as you stay focused.

If you believe getting out of debt is difficult, your mind will always find excuses to validate that belief. Your focus will shift to what is impossible and this will have an adverse effect on your implementation plan.

If you’re struggling with debt and simply can’t see a way out, click here to download a copy of 7 Steps To A Debt-Free Life, your complete step-by-step guide to getting out of debt and staying out of debt… starting today.