PolicyTray

Insurance Blog

Dealing with your debt


If your bills give you anxiety and your debts are getting in the way of other dreams, it’s high time you sort out your debt and get it fixed. Laying out a strategy and committing to it, will definitely get you out of debt, as soon as possible.

1.       Budget

It is as easy and as difficult as it sounds. Knowing exactly what you owe comes from strong budgeting habits. The more you procrastinate this, the more trouble you will be caught up in. Financial experts even discovered that some people resist doing this, because they’re afraid of what they’ll find. There’s nothing like seeing you’re spending staring back at you, that forces a behavioural change.

2.       Consolidate

One of the smartest way to sort your papers out is to consolidate multiple credit-card and loan bills into one loan with one monthly payment can help you manage what you owe. This will not only make managing the debt easier, but will also make paying it a lot less stressful. 

3.       Prioritize

If you can't pay all your debts each month, financial experts recommend focusing on keeping current on secured debt--obligations like auto loans and mortgages that are backed by property. Set aside an amount each month in your budget just to pay off your credit. You'll get a psychological lift from erasing each card's debt.

4.       Consult

We agree that sometimes, doing it all by yourself can be tough. It might be very easy to get all stressed, depressed and anxious as you see those big numbers. These emotions can be blinding as well. Which is why, we recommend approaching an agency that will act as a consolidator, collecting one monthly payment from the debtor and disbursing funds to creditors and make it much less hard on you. 

5.       Consider

Once you’ve made all the consultations and prioritizations, you need to consider what your options are and choose the best one out of them. This choice has to be made consciously after deep thought, because it can make or break your debt plan!

Yes, getting out of debts isn’t easy. But it’s also not impossible. If you are able to cast aside your emotions, and think logically with a committed strategy, you can win the battle against debt.

WRITTEN BY: BALAKARTHIGA.M



Loading