Are you aware of the term ‘Debt Fatigue’? For the ones who are not – here’s your answer: It is the restlessness that sparks within a person when he/she is constantly failing to dig out of his/her debts, despite regular payments. The reasons can be varied, either because of high-interest rates or due to the amount of the debt incurred or something else
Now, if you are thinking that debt fatigue is a mere façade, then let me tell you – No, it pretty much exists. With the rising amount of debts everyday, more and more people are experiencing it. According to New York Federal Reserve, as estimated in the second quarter of 2019, the total consumer debt in America alone was approaching $14 Trillion!
Well, considering the MASSIVE figure, I have crafted this content piece that will guide you out of the debt trap. Before we begin, here’s a master tip: you can’t pay your entire debt overnight, it’s a process. Take one step at a time, and you will soon achieve your desired goal. It is all about planning, persistence, and endurance.
Now, let’s start!
Get up and face it
Not just repayment, you won’t be able to resolve any mistakes if you don’t own up. That’s how it works and that’s how you begin.
If you have been crushing all the bills or throwing them out of the window unopened – STOP, right there! Nothing’s going to change even if you refuse to accept, it will only add to your problems in the form of interests.
So begin by adding all your debts. From the grocery guy to big loan statements, add them all up, and find out the final figure. Now check your base payments, i.e. loans/credit card payments, and your daily ‘necessary’ expenditure. If your net income exceeds this figure – Well, I know its harsh, but you have to change your lifestyle significantly. That is, sell your house and shift to a smaller apartment or work overtime.
The reverse pyramid
Like I said that a credit and debit card debt forms the base; likewise, not all debts are equal. There must be a specific order complying with which you are required to pay back your debt.
Since you can’t pay all the debts at once, create a list of all your debts on the basis of the rate of interest, which is the highest at the top followed by the second-highest and so on. You can call this process a pilgrimage of repayment. Target high interest non-deductible first, low interest next, and then tax deductibles.
You owe it to yourself
You will never emerge a winner if you lack the desired determination and persistence to live a debt-free life. Keep in mind the end goal and the benefits that come along with it. This struggle is short-lived.
Repayment calls for some painful decisions and harsh altercations in your lifestyle. So, start by making small cuts like self-exercise routines instead of a gym or a staycation instead of vacation. In the long-run, these small cuts will contribute to the repayment of your debts considerably.
Then, if your situation demands for something more, you will have to make harder cuts, like, selling the non-essential items in order to repay your high-interest loans.
As I mentioned above, it’s your debt and only you are responsible to repay it. However, this doesn’t imply that you can’t seek help from experts. There are professionals in this field of work, for example, credit counselors or debt advisors. They can render help in multiple ways – add professional weight to your negotiation, avail support during your meeting with the creditors and keep your motivation alive through this tiresome process
However, if you are on the other end, that is, if you are the creditor – You can reach out to debt collection agencies like Cedar Business Services who have a credible history of collecting debts. They will help your clients with the ideal payment plans and guide them to the end line. Their organization is driven by a people-first approach and thereby generates maximum recovery. Read more about cedars business services here.
You cannot lose hope because the debt that you borrowed HAS to be repaid. Believe that the end line is near and all your efforts are going to be worth it when you will be free of the debt-sword hanging on your head!