Dealing with debt, in any form, is a significant undertaking for borrowers no matter what stage you’re in — whether you’re dealing with the early stages or you’re deep in debt and struggling to manage a basic budget. Debt can sneak up on you, especially if you’re busy balancing a career and a family. Overspending or money mismanagement are not uncommon around the world.
When it comes to understanding and managing your debt, there are important resources and helpful tips to consider. Knowing your options can help you make the best decision for your situation, so that you can, ultimately, find your way out of debt faster.
In this article, you’ll learn the important dos and don’ts of debt management and how you can find financial freedom faster.
Do: Hold Yourself Accountable
It may seem obvious, but it’s crucial to be truthful about your financial situation and to be honest about your debt. You may be able to temporarily ignore it or distract yourself but, ultimately, you’ll find more trouble down the line. Holding yourself accountable is an essential part of successfully getting out of debt and setting yourself up for the future.
Don’t: Feel Shame for Being in Debt
It may feel like you’re the only one struggling financially but the truth is, there are many individuals dealing with varying degrees of debt — whether they’ve accumulated credit card debt or are trying to pay off student loans. It’s easy to feel shame around these situations when external pressures tell us we should have a better handle on our situation, but feeling shame is the easiest way to continue down a path of debt rather than recognizing you’re not alone and taking steps to relieve yourself and taking the financial burden off your shoulders.
Do: Find the Right Solution
Everyone’s relationship with their debt is unique, which means there is no one-size-fits-all solution. The good news is that there are plenty of options available to meet your needs. For those with smaller monthly payments, it may be worth looking into ways to earn additional income, which you can use to exclusively pay off your debt. In other cases, convenient, online lenders like FlexMoney may be the better solution, so that you can consolidate and deal with those high-interest payments.
Whichever solution you choose, ensure that you can stick with it for at least a few months afterwards. It takes time to pay down debt and you want to ensure you’ve chosen a realistic solution that you can maintain.
Don’t: Take Consolidation for Granted
Sure, if you choose to consolidate, it may seem like you’re out of the woods but in reality, you still have one significant payment to pay off, often in a certain time period. If you’re able to secure a flexible repayment schedule, you can work that into your budget easily — but it’s important to ensure you’re making those payments on time, otherwise, you risk dealing with high-interest rates and falling back into old patterns.