The journey from debt to creating a savings fund once you’re free from your all financial obligations is an interesting one. Here’s a synopsis of what you may expect from your financial travails to get out of debt through some of the most viable ways, depending on your financial situation.
- When you’re bombarded with loads of outstanding credit card statements, utility bills, hospital bills, emergency car repairs and other essential as well as non-essential costs, a stark negativity may grip your mind. It could cloud your mental ability to focus on things that actually matters. You begin to develop low self-esteem due to your poor financial state of affairs and hence, start suffering from constant rumination (or debilitating self-talk).
- One of the best ways to drive away negative self-talk is to seek a financial expert’s opinion about your financial health and chalk out a conducive debt repayment strategy so that you don’t succumb to your own ruthless words.
- As you travel further, you’d experience a sharp breathlessness due to your overwhelming debts. It’s actually stress. And you’ll need nerves of steel to combat your financial problems effectively so that you don’t break down midway through your debt free journey and abandon the ship altogether.
- To manage the stressful financial situation, you may create a budget that is based only on your monetary scenario. It’ll help you to manage your essential expenses smartly while cutting back on unnecessary expenses that contributes to your debt burden.
- While you’re severely indebted, it’s but obvious for certain things to become unaffordable for you. It’s a time-barred condition since once you pay off your debts, follow a budget and increase your income, it’ll vanish. But until that happens, poverty may strike you hard.
- To offset cash crunch and resolve your destitution, you may seek to work extra hours, or take up a side gig to supplement your anaemic paycheck. As a result of fattened wallet, you’ll be able to afford things you need and to a certain extent, fulfill your wants.
- Too many debts, may make you forgetful of your responsibilities. Your multiple credit card statements, collection letters, student loan debt, and other personal loans could wreak havoc on your memory. You may miss their payment deadlines every now and then and get slapped with huge fines and other penalties. However, you can consolidate your unsecured debts into one so as to make it easier for you to repay your creditors.
- Apart from that, you can automate your debt payments so that you don't have to worry about paying them off every month.
Finally, you could find yourself in a soup and lose faith in yourself. You may begin to wander off into an imaginary world. Eventually, you may doubt your debt repayment strategy as you can't see any instant tangible return. It’d lead to chronic delusion that your debt problems will never go away. You may seek lessons from debt free stories of people around you, only to pick up real-life ideas that will have tangible impact on your financial health. This could bring you back to the real world. The key here is to stick to one debt relief method and pay off your debts with full conviction.
Share your thoughts, if you have any so that we can learn from your words of wisdom!