Recently I had taken few loans to meet my medical and personal expenses. At the time of taking these loans I was least bothered to think how I will pay off the debt because I was confident that I have a regular salary income. The bank willingly granted me the loans but when it was time to pay off I found myself in debt. Now each month I was either with no savings at all or with few bucks for my daily needs because the amount deducted was too high with the rate of interest on the loan.
I thought to borrow some money from my friends and relatives but the hard reality was that they only offered me meagre amount which did not suffice my requirement. I was totally stressed and tensed as how will I be able to pay off my debts as well as manage the upcoming finances and daily needs of mine until I clear my on going debts. So I decided it was better to confront with my debts.
I downloaded a budget app on my smartphone and started creating a budget and began tracking my expenses. But that was not enough. I had to train my mind intellectually to do something to get rid of my debts. I kept on thinking and the mindset to succeed in this fray against debt and there came the seven mind blogging ways as mentioned below to get out of your debt.
1. Your mind should accept that fact that yes you have a debt problem
Earlier I never thought that I was in debt unless the debt told me yes you are. It is always better to let your mind be aware and you accept the hard fact that you are in debt and admit that with courage that you are in serious financial trouble.
It is not that this acceptance should trouble you more but this will make you realize to act or do something and recognize the fact that this is not a permanent problem, and you have the power to overcome it just like many others have already done before you.
2. Tell yourself that you will face it and not run away from the situation
In every fearful situation it is always a wise man saying to confront it rather than turn your back and run away from it because you are afraid of it. So you need to stay calm, assess the environment, and find the best way to neutralize the situation and bring yourself to safety. When faced with a seemingly unsurmountable debt, it’s also best to stay calm, assess your options, and find the best strategy to pay it off as soon as possible.
3. Think of making few changes in your life
If you keep doing what you’ve always done, nothing will ever change. So if you want your debts to disappear, then it will be necessary to change how you live. Your daily routine will change, your spending habits will change, your lifestyle will change and in some cases, your set of friends will change too. What I did was stopped my mind to use my credit card; kept my daily needs to low; stopped my temptation to buy or shop something for myself and such kind of things
4. Focus on creating more income
There are two ways to come up with the money to pay your debts lessen your expenses, and earn more income. Unfortunately, simply eliminating your unnecessary spending won’t work fast enough to pay off your debts as soon as possible. So if you want to turbo charge your finances, then you really need to increase your cashflow. Keep your worries at bay and focus more of your time and energy into creating streams of income. Get a second job, do freelancing, sell your stuff be proactive.
5. Know that that it will be difficult and be realistic
If it’s easy to get out of debt, then nobody will have this problem. So you need to take this seriously and have a realistic approach. Eliminating your debts will be a big challenge, but in the end – it will be one of the greatest achievements that your friends and loved ones will always remember about you – an accomplishment that you will forever be proud of.
6. Be ready to face and overcome self-pity and depression
Calls from collection agencies or banks will continue and letters from law firms will relentlessly come; meanwhile, the world around you will carry on and move forward without sympathy. Paying off your debts can be a lonely battle, but you don’t have to be alone. Find joy and comfort in the listening ears of friends and loved ones. Don’t be afraid to talk about your fears and hopes with them because it will help you a lot.
7. Always remember that your debts do not define who you are
I got myself into debt because of my personal circumstances and never cared to save for rainy days. So you need to realize your mistakes and change yourself. Like stop being an impulsive buyer or do not swipe your card when buying a lot of things that you don’t need, to impress people and be a materialistic person. Instead, you need to chose to be the good person that you know you can be – that you knew exists within, if only you give it a chance to come out by taking charge of your finances.
So if you’re trying to get out of debt, and you feel like it’s never going to end, remember things will always get better and it will be over sooner than you expect if you follow these above ways with discipline and sincerity.