Defeating Your Debt Demons

Rid yourself of these financial evils to experience true victory

By: Jennifer L. Lopez, Debt.com Financial Fitness Trainer

For many of us, we feel the weight of our financial debt, yet we fail to do anything about it.  There are a variety of reasons that we try to hide from our debt, rather than dealing with it once and for all.

But if we ever hope to eliminate our debt and experience true freedom, we must defeat the things that cause us to stall in resolving it—for the sake of this article, we will call those our debt demons.

Procrastination Due to Fear—Humans have a fear of the unknown.  We don’t like what we don’t know.  Due to this natural instinct, many fail to deal with their debt, because they don’t know how to or what to expect.

Fear can be crippling and can lead to inaction.  But if we are to defeat this demon, we must strive to gain knowledge on how to conquer our debt and then move forward to apply it.  As we create the details, we will feel more secure in knowing what to expect and how our plan will play out over time.

False Optimism—Some people continually feel like things will get better on their own.  Or that their financial situation will improve soon, so they will then be able to catch up on their debt.  Though optimism can have its place, being overly optimistic can lead to a lack of realism and the inability to understand the gravity of a situation.

If you are to defeat this demon, you must take an honest look at your income, debt, and potential future earnings.  If you have been unable to pay so far, and you expect your situation to remain constant, is it really realistic to assume that you will suddenly be in a better place?

Newsflash: The debt is not going away, so best to deal with it as soon as possible.

Reluctance to Alter Spending Habits—Some people choose not to deal with their debt, because they like to spend more than they have.  These people may have no interest in ceasing from charging purchases on their maxed-out credit cards or establishing any sort of discipline regarding their discretionary spending.

If this is your issue, you must realize that the debt is only getting worse, and it will not be going away anytime soon.  Starting to pay the debt now may actually mean less of a need for a very restrictive spending plan later.

If the debt must go into a debt settlement plan, debt consolidation, or a legal debt settlement arrangement like bankruptcy, your spending will be reviewed, and major changes will not be optional.  Better to make minor modifications to your budget now than experience a major overhaul later.

Failure to Recognize Trouble Ahead—If you recognize a roadblock ahead, you are likely to slow down your car.  But what if you do not have that foresight?

Many people know that they have a few too many credit cards or loans, but since they have always been able to make timely payments in the past, they have no concern for the future.  Why wait until your house is on fire to put it out when you could have taken measures to prevent it in the first place?

If your credit report is filling up quick, you should take some time to evaluate your debt situation, and work on fixing it before it becomes a problem.  You will save yourself from a lot of heartbreak and your credit score from long-term damage.

The best way to defeat your debt demons is to recognize them and call them by name. Once you know what you are up against, you will be better prepared to fight them. Overcoming some of the reasons that you are stalling from dealing with your debt can bring you long-term victory in your financial life and a plan to steer clear of debt in the future.

How do YOU defeat your debt demons? Submit your comments below.