There Is Always A Way Out of Debt

There’s a reason why they say they living with debt is one of the most stressful living conditions there is.

It’s all consuming.

You wake up, and you’re thinking about debt. You go to sleep, and you’re thinking about debt. It feels like a black hole from which you cannot- and will not- escape.

But here’s the thing: there is always an escape route available.

It may take time, it may be hard work, but it is possible. Take a look at a few ways you can manage to get your financial life back on track.

Get Real

Like any challenge, the first step is to take an honest look at where you are.

You have to combine realism with optimism.

A great example of this is the Stockdale Paradox, which says, in so many words, that you have to be completely honest about your current situation- and have complete belief that things will work out.

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It’s much easier to simply avoid the debt, to keep it at arm’s length. But is this really the right approach? While it’s easier to handle the debt this way, you’re not taking action to solve the problem.

And actually, the debt is just growing – via interest – that entire time anyway. So be brave, and take a look at your debt total realistically.

It’s unlikely to be worse than you imagined, but even if it is, at least you know what you’re dealing with. In many ways, this is the most difficult part of the whole journey.

Have the courage to assess where you are now.

Get a Small Win

You need a small win- any size win- to build confidence.

One way to get that small win is to pay off a small debt first- because it represents progress.

If you’ve got multiple debts, then you might be tempted to take a look at the biggest one and think, “let’s start here.” If you don’t know where to start, consider tackling the smallest debt first.

While this might seem a bit pointless, it’s not! There’s a big psychological boost attached from getting rid of a debt, even the small ones. Once it’s a thing of the past, you’ll see just how easy it is to move on from debt.

Do You Need More Help?

Of course, there will be times when it’s just not feasible to tackle your debts all on your own. If this is the case, then don’t worry – you still have options. You can, for example, look into consolidating your multiple debts into just one debt – it’ll make managing it much easier.

If you’re in greater financial difficulties, then you may want to consider filing for bankruptcy with Dove Law Firm. No matter how great your mountain of debt might be, there are always options for putting it behind you – and especially so with the help of other people and organizations.

Ask for help if you need it.

How Can You Increase Your Income?

Are you tapping all of your potential sources of revenue? You might want to consider getting a part-time job, selling your old belongings, or starting a passive revenue stream.

It’s easy enough to do, and all that money can go towards paying down your debt.

Stay On Track

Once you’ve plotted your route out of debt, you’ll want to take steps to ensure you don’t fall back into it. Curb your spending, set up a budget, and cut out any bad habits that drain your bank balance.

This post is for educational purposes only.

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

Co-Founder: accountinged.com

(email) ken@stltest.net

(website and blog) https://www.accountingaccidentally.com/

(you tube channel) kenboydstl

Image: Bullseye, Jeff Turner CC by 2.0