Problem debt can cause all kinds of issues for people and families. Many people believe that they will never clear their debt and that it will follow them around for life, but paying debt off can be easier than you think. It involves altering your lifestyle slightly and changing your approach to buying.
Being in debt feels like there is a dark cloud that is constantly following you around. It can make you feel trapped and alone, but debt is a problem that many people find themselves in around the world.
In addition to the long-term financial strain that this can bring, debt can also have a huge impact on mental health. This debt that impacts mental health by causing stress, anxiety and depression is “problem debt”. You should deal with problem debt quickly before it spirals out of control and has a lasting impact on your life.
Clearing debt is not something that everybody can achieve overnight, but here are a few helpful steps to take:
- Create a List
The first step involves creating a list of all your debts. Having it all in front of you helps it to feel real and allows you to see who and how much you own. Having a list is also helpful as it can feel cathartic to cross a debt off the list once you have paid it off.
- Stop Borrowing
It is vital that you stop using debt to fund your life if you want to be rid of the dark cloud finally. It means that you need to stop signing up for credit cards and purchasing items on finance.
- Emergency Fund
Everybody needs to have an emergency fund of around £1000. This should provide you with enough cash in case an emergency arises and will stop you from using a credit card.
The most important stage involves creating a budget and sticking to it. This budget should include everything coming in and everything going out so that you can properly gauge your finances. The goal is to increase your surplus (leftover money) to bring down your debt. You can achieve this by either earning extra cash on the side or by reducing your outgoings. You can reduce outgoings by eliminating unnecessary purchases, buying cheaper food at the supermarket and reducing money spent on going out.
- Professional Help
There are professionals that you can speak to and programmes to get involved with, that can help you to get out of debt. These often involve changing your approach to spending money so that you can stop purchasing things that you do not need.
Problem debt can cause devastation, and it is something that you should address immediately. Although it may feel like it will follow you around forever, the above 5 steps can help anybody to chip away at their debt without it impacting their daily life too much. With patience, hard work and sacrifice, you can finally be rid of the gloomy cloud of debt.
Author: Oliver Curtis
Hi there. I’m Oliver. I’m just a young boy from the outskirts of… Okay, that’s a lie, I’m not a young boy anymore, although I certainly feel that way at heart.