Thursday, August 27, 2020

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Everybody has a certain amount of debt. Whether it's a minimal amount or a significant chunk, whether you are planning for the future or you are trying to escape the debt cycle, it can help you in certain ways. Whether it’s about acquiring certain resources or professional help, it can be a big lesson, but when you wipe the slate clean, it doesn't mean you will be out of debt for the rest of your life. For many people, it's all about mindset. It's crucial to change your perspective so you can deal with debt and beat it once and for all. But how do you do this effectively?

Set Yourself a Goal

So many people talk about escaping debt as a nice thing to do in life, but if you are to really be debt-free one day, you've got to set tangible goals. If you start to reframe your goals and make them real, you will come up with an appropriate plan. Having a strategy is crucial. And yes, there are many out there such as the Debt to Success System (DTSS). And while DTSS is legitimate in its approaches, you've got to find a strategy that suits your lifestyle and your goals. A strategy is pivotal in terms of escaping debt. But you also might want to consider having smaller goals because this makes it more manageable in your mind. When you start to set targets on a weekly or monthly basis, this can demystify the process in your mind.

Take Responsibility for Your Debt

It's so easy to blame external problems. So many of us are now struggling due to the pandemic. But when we start to think that we are responsible for our own debt, this could free up mental space so we can do something about it. Yes, there are so many reasons we can be in debt through no fault of our own but at the end of the day, the debt is in our name, nobody else’s. When you take on debt as an obstacle that needs overcoming, this can help you into the right mindset. When you start to think of debt as an obstacle instead of a burden, you will have a better idea of how to approach it. That can be a burden, especially when it comes to credit card debt. But if you continue to make minimum payments on that card, it is not going to disappear anytime soon. When you start to shift your mindset, it stops the debt from being so scary.

Understand Your Type of Debts

Why is this important? Different sorts of debt require a different method of dealing with it. There is a big difference between a bank loan and a credit card. If you have a credit card, you can apply for a balance transfer card. And you would be able to qualify for this in comparison to your friend who is trying to pay off their student loan. Once you start to become savvy in terms of your debt, you will have better control over the situation.

Keeping Yourself Focused

Setting a goal is a good starting point for many but people struggle to stay on track because, after that initial push where they feel that they have finally started to chip away at the debt, something can come up, throwing a spanner into the works. Keeping yourself focused isn't just about putting all of your energies into paying off your debt because constantly focusing on your negative bank balance can be very depressing. It's all about the balance in terms of mindset. There is no harm in treating yourself to something little to offset the negative feelings. If you set yourself a target and you meet it, you are getting one step closer to being debt-free so why don't you celebrate in a small way?

Reducing Negative Thoughts

One of the overriding thoughts when it comes to getting out of debt is the fact that you don't have as much money as you used to. When you're making changes to your lifestyle and buying cheaper versions of the products you are used to, the temptation to go back to your old ways is larger than usual. It's important that while you are working hard to get out of debt, the fact that you may feel there are certain aspects of your life where you are depriving yourself can be harder than the debt itself. This is where you have to really focus on practicing positive mental attitudes. When you start to think about retaining focus, but also getting to the bare bones of what makes you happy, you may start to uncover a few home truths. When we limit our resources, we can feel a challenge that could stoke a fire in us. This is why many people are now practicing minimalism. The idea that drastically reducing your personal possessions can make you understand what you really need in life. And of course, the day you get out of your debt may not necessarily mean you start to buy all the clothes you want. Instead, you may use your new-found finances to purchase things that really enrich your life. In terms of the family, we may choose vacations that enrich our lives, rather than toys, video games, and other worldly possessions.

When you have a significant amount of debt, you may feel there is no escape. If you follow these approaches, it arms you with the sensibility to formulate an action plan. But you should also understand that when you get out of debt, you may feel different than you did before. As easy as it is to say that money isn't everything, this is not the case. But we should think about what we use our money for. If we can start to focus on the quality of life rather than the number of things that we buy, this could be the biggest lesson of all in learning to deal with debt.


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