They say money cannot buy happiness, and for many of us, our financial situation is a disaster waiting to happen. Before long, bills start to pile up, the hole becomes deeper, and you wonder how you are ever going to get out of debt.
Millions of Americans are suffering from what’s not in their wallet and how to pay the bills. It’s no wonder the stress seems downright unbearable:
- Millions of people are unemployed.
- The average student loan debt hovers near $27,000 per person, and one in five households is overwhelmed by student loans.
- Americans owe more than $12,000 in credit card charges per cardholder.
The mounting pressure to get out of debt directly affects how we feel, and it doesn’t discriminate. While you should honestly face the issues, obsessing over the circumstances of your situation can become damaging mentally and physically. When you think about it, your biggest problem is choosing how to eliminate your debt, and simply developing a plan of action. Once you face the music and strategize how you can dig out of your money pit, you instantly notice some of those obstacles begin to fade away.
One of the best options for the young and cash-strapped is to settle the debt. Typical settlements can erase between 25 percent and 50 percent of the outstanding balance owed. This is rapidly becoming the top method for consumers with overwhelming financial hardships.
The Upsides of Debt Settlement
- You can pay off your debt in just months or a few years, depending on your cash availability.
- Your credit score should begin to improve after you settle your debt.
- Debt settlement typically lowers your debt-to-income ratio quickly and offers a way to build new credit while paying off your debt.
Debt Management is Limited by One Thing – Your Attitude
Awareness is the first step in changing your future. Before you become financially free, you’ll need to face your fears and change any debt-inducing habits you’ve acquired. Create a new thought process that keeps you on track, before deciding upon any monetary transactions.
Denial and an unstructured comfort zone can keep you stuck in a rut and dissatisfied with your money situation. You see, the reality is most people do not particularly do much about the various dilemmas they face. You will think about your problems, and constantly worry about them every day, however, most of the time, nothing positive and constructive gets accomplished.
There are no quick fixes, and we all wish there were, but if you stand a chance of realizing real financial freedom, you will need to cut expenses, and start living well below your means. You do not need to take a vow of poverty, but living below your means requires unyielding restraint.
Keep in mind that while you can get out of debt, you didn’t get into this situation overnight so don’t expect instant miracles.
Jeffery Sterner is a contributing writer to America’s Debt Help Organization- Debt.org and informs Americans on how they can live a debt free life.
Category: Money Basics