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Today’s post comes from a fellow S&S reader. For all of us struggling with debt, Amber has a couple genius tips for managing the debt life 🙂
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Re-injecting Order In Your Life Of Many Debts
Some people live in constant anxiety over their debt. They feel like they have an imaginary axe over their heads, ready to drop at any moment.
But we’re not all the same, and some people function normally even when they’re in debt.
Is it because they just don’t care or live without any hassles? More than likely they have been in the situation before and feel comfortable with their ability to pay their debt back in a timely manner.
Other people rack up debt because they need the funds to launch their careers. Think student loans. Or maybe an amateur artists who needs to take on a loan to facilitate a gallery show of their work.
No matter how you get here, we’re all sitting on the same train, just in different carriages.
On of your top financial priorities in life is to keep up with your payments. Keep calculating how much extra you owe due to the interest rate of the debt. And slowly, but surely, get up and out from underneath somebody else’s thumb.
It’s a lot easier said than done, but pooling all your debts into one payment plan could be the best lifeline you have.
Structuring the list
When your debt gets to be too much, it feels like you’re drowning.
Having multiple sources a debt can make you feel as if you’re being picked apart by piranhas in a pool. Everyone is taking a bite from you from all angles and some tear of more and other less. You need to inject order into your life and not try to manage day to day.
Your need to make a list of your debts, so they can visualize it.
However, many people make a mistake on this step. They create a list where the largest debt is at the top.
This shows a false urgency as the biggest debt you have isn’t your biggest problem.
Instead, you should list your debts in a priority of highest interest rate first. A large debt with a low interest can be taken its time with, but a small debt with a huge interest rate can spiral out of control quickly. Start paying off the debt with the highest interest first and foremost.
Pooling the pressure
People who have the weight of debt around their necks will tell you that they could manage the debt easier if it were just less complicated.
People may wag their finger and say they shouldn’t have taken out so many loans to begin with. But nobody on the outside knows what circumstances brought people to take on that debt.
So rather than berate them, it’s better to guide them toward pooling their debts into one debt, so payments are easier.
Debt consolidation loans do this very thing by pooling all of their debt into one payment only. Places such as debtconsolidation.loans offer up to a staggering $100,000 if you’re eligible. The interest rate for the single payment also stands a chance of being lower than the overall combined interest rates of all their debts.
With a little planning and sensible pooling of the pressure, you can re-inject order into your life.
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