Who’s in control of your life? Most of us feel we are, but truth be told, if debt has a hold on your finances, others may be calling more of the shots in your life than you realize. The monies you pay out each month to your creditors are flinging you in the opposite direction you started out in and keeping you from achieving what you really want in life. The fire-breathing debt dragon is really in control of your future, not you.
Goals and Dreams
Kicking back on a beach in Belize may or may not be your goal or dream, but you don’t have to allow debt to rob you of your future. Your goals and dreams are never more important than they are right this minute. This is your life. No matter how difficult a debt situation is, keeping in touch with the greater picture of where you want to go and is vital.
Is Debt Affecting Your Health?
Besides stealing dreams and the future, out of control debt can affect many areas of your life including your job performance, focus, friendships, your closest personal relationships and even your health. Worrying about debt, for example, often leads to anxiety. Long term stress and anxiety is quite dangerous to mental and physical health. It can negatively affect your heart health, digestive process, the ability to focus, keep a sharp memory, and will throw your immune system into a tailspin.
Putting off good decisions about taking back the control of your financial life is a luxury you can’t afford; it’s a gift you give to your future self and health.
Be Honest With Yourself
Facing the fears you have about debt is the first step to getting back on track. Taking a good, honest look at what’s holding you in place, where you are right now is vital. No matter how difficult, be truthful with yourself and embrace the reality that is yours. Admit that you and you alone are responsible. Taking responsibility is empowering and a solid step forward to slaying that debt dragon once and for all.
Simple Steps to Regaining Control
Some research, good counsel, and then the implementation of wise decisions can make the difference between disaster, bankruptcy, divorce and living your dreams. Most people who have taken steps to pro-active financial health are very relieved they took the time to regain their freedom and find the energy and resources to reach their dreams and goals.
Gather Your Debts and Courage
Take one afternoon and close the doors, silence your phone and go through your current debts. Gather all your statements up in a pile and add up what you owe them all. Yes, everyone. Then look at your interest rates on each statement and the fees you pay all together each month. What options do you have at this point?
Regaining Control
Want to streamline? Wrapping all your debts together into a debt consolidation loan may be a way for you to regain control of your financial life. Rather than having many debts outstanding, a debt consolidation loan means you pay one payment. Jot down your monthly expenses and formulate a budget that is realistic and doable. Planning for entertaining and emergencies ahead means you are less likely to fall back into debt.
Is One Payment for You?
Having to pay one payment to a loan that consolidates your bills into one easy payment each month versus many is much more convenient, and will relieve much of the stress. If your credit score allows you to get a secured loan, or, a loan that uses the equity in your home as collateral, your interest rate may be much better than that you’ve been paying.
Next Steps
Look at the bank or banks you already do business with and have an established relationship with. Sit down and talk with a loan officer and find out exactly what they offer. Don’t be afraid to ask questions and see if they will negotiate on their rates. Check out several banks and remember, they want your business; you’re not begging. Many credit unions will have a slightly lower interest rate, so be sure to check into this option. A lower interest rate is money in your pocket.
Are there any Downsides to Consolidating?
For some, bundling debts in one big pile and having one payment is only a temporary fix and does not address the symptom of a deeper spending problem. Unfortunately, this crowd usually gets back into debt within a short period of time because they haven’t solved the issues that got them into debt in the first place.
Take Control of Your Future
Today’s the day. Now’s the time to reclaim what’s most important to you by considering all your options in front of you as never before have there been so many opportunities and adventures around the world. With a clearer financial picture, you will position yourself for fulfilling your dreams and goals, your freedom. The decision for freedom is all yours. Slay that beast!
Image courtesy of Stuart Miles / FreeDigitalPhotos.net
