Deal With Debt Differently
January 3rd, 2008 | by rachel |
It’s the time of year when DEBT becomes a “four letter” word. Consumers that spent more than they should have for Christmas gifts are dreading the arrival of the next credit card bills. This dread and a promise to not get into this financial situation “ever again” has become an annual event, just like decorating the tree and finding full stockings on Christmas morning. What if there was no “holiday debt dread” to deal with at the beginning of each new year? What if debt didn’t add worry to your financial life? Good news. It doesn’t have to! A few simple changes can alter your view of debt and the effect it has on you, no matter how much of it you carry.Debt does not just happen. It cannot be present unless and until we make the choice to purchase things we cannot afford at the moment. For the most part, debt is not about money. It has more to do with our willingness and ability to make decisions for the long term instead of for the moment. Understanding that debt involves more than a dollar amount is one way to handle debt differently than ever before. When money is not part of the equation, you can evaluate why you use debt in the first place.
For a variety of reasons, debt has the ability to make us feel guilty and ashamed. That guilt and shame is often transferred into a very personal message that we give ourselves. If we have debt that is out of control, we think there must be something wrong with us, personally. As long as the presence of debt has the ability to stir such strong emotions, it will be a negative part of our lives. To make a difference that shows in your finances, take responsibility for all debt, regardless of why, when or how much there is. Doing that will help to separate the practical matter of money from the personal matter of emotion and allow debt to occupy a different place in your thinking.
Establishing debt as a priority may be the most challenging and significant difference to be made with your finances. This does not necessarily mean that you will eliminate all debt. It does mean, however, that you should honestly examine the role debt plays in your life. Is it there for a particular purpose? Is it beneficial or detrimental to your overall financial picture? Is it part of a financial “plan” you have in place? The challenge is not answering the questions. The challenge is the process of answering them, making necessary changes and monitoring debt going forward. Go ahead. Take the challenge!
“Plastic” is an acceptable form of payment in more places than ever. Using it makes it easier to spend without paying attention to all the “dollars and cents” that are physically leaving your posession. Spending ”unconsciously” can be a habit and debt is a likely result. A different way to combat debt is to make a commitment to spend intentionally. This means paying attention before, during and after spending money. Eventually, this will also become a habit - one that will make debt less prevalent in your everyday finances!
There are plenty of strategies to actually reduce the amount of debt that you owe - cut up credit cards, get an extra job, tighten your budget. This year, deal with debt differently and get ready to see real progress toward your financial goals.