Seven Steps to Changing How You Think About Debt (So You Can Get Out of Debt Quicker)

Getting out of debt does not happen accidentally. Well,
even if it does happen accidentally (like a person winning
the lottery) debt problems are rarely solved unless and
until the person with the debt starts to think about the
debt in a different way.

First, you have to admit you have a debt. Believe it or
not, this a stumbling block to many people who prefer to
live in denial (it's cheaper) than debt. But denial will
eventually crack under your feet and plunge you into the
icy waters of reality. Size up your debt.

How do you do that? Take a pencil and paper and start to
write down all of your debt. You may have to call the
toll-free numbers on your various credit cards and look up
phone numbers on varies statements. Write down all of your
debts and add them together.

Don't look away, even if the number is scary. You need to
know the truth. Sometimes it takes a scary number to get
our full attention!

Second, you have to "own" your debt. A lot of people act
like their debt belongs to someone else. And maybe it did,
in a way! Some people come into overwhelming debt because
they wound up with the debts of a spouse (or ex-spouse).
Some people end up paying off the debts of family members.
Others got into debt when a house burned down or the family
suffered a medical problem. You might get into debt over
posting bond for a loved one.

No matter how you wound up with the debt, you have to
recognize it as your own. You have to take responsibility
for it.

There are lots of reasons that people get into debt. Even
if you just overspent your way into debt, you probably had
a lot of good reasons for what you did. Maybe you had a lot
of debt left over from your college days. Maybe you were
under a lot of emotional stress and found "retail therapy"
helped. Maybe you just did not understand money. I know a
woman who wound up paying off a lot of debt she got herself
into while in the "manic" phase of undiagnosed
manic-depressive illness.

You may have reasons, and that's not the point. The point
is: the debts are yours. Take responsibility for them.

You won't ever get out of debt till you admit that you (not
anybody else) have debt.

Third, you need to forgive your creditors. That sounds very
weird, but have you ever noticed that in the Bible, it
talks a lot about "sin" and "debt" being related? The
Lord's prayer, for instance, in some Bible translations
talks about asking God to "forgive us our debts as we
forgive our debtors." In financial terms, overlooking a
debt means to "forgive" it.

You probably got into financial trouble because of some
other trouble. Whether it was a failed marriage, a natural
disaster, disease, devastation, mental illness, or just
plain getting through a "rough patch," you probably need to
go back and forgive the other people involved.

Let's say you're heavily in debt because you owe child
support. And let's say that there is a lot of pain still
attached to the relationship that brought that child into
the world. Maybe you even feel tricked or cheated into
paying the child support. And it could be genuinely unfair.

Forgive everybody involved. Forgive the other parent of
your child, forgive your child, forgive the family of the
other parent, forgive the state, and forgive the judge who
made the ruling.

Forgiveness does not mean that you agree that what they did
was right. Forgiveness does not mean you like what was done
or that you approve of what was done. Forgiveness means you
accept it and you refuse to carry around that wasteful
anger and animosity any more.

What happened may or may not have been fair, but that's not
the point. It's happened and you are ready to get past it.
That's forgiveness.

Fourth, you need to make a conscious choice to get out of
debt. A lot of people are digging themselves deeper and
deeper into debt not because they want to, they just have
not decided to stop digging! Make a decision.

Getting of debt involves one big decision (that's the easy
part) and hundreds of smaller, daily decisions (that's the
tough part). If you need to, find a way to remind yourself
of getting debt free. Maybe you can write it on a paper and
stick it on your desk, in the car, or on your bathroom
mirror. You can make up a mantra for yourself and just say,
"I'm going to get out of debt" whenever you need to and
even some times when you don't need to. Don't buy anything
new, but if you have a ring or bracelet or something
special, you can wear that and use it to remind yourself
that it is the symbol of your decision to get over your
debt.

Fifth, stop the bleeding. Most debt is a result of a lot of
small wounds. Stop as many as you can. This means you have
to look for them. A few debt areas will be obvious. Do what
you can to stop digging yourself into debt. But search out
other ways that money is slipping through your fingers.

Don't be afraid to be zealous. Zealous, passionate people
are the ones who can beat debt. Quit the gym, don't eat out
so much, cancel cable TV, start shopping the garage sale
circuit. Many of us get riled up at some of those
prospects, but they are all viable strategies. They work.
I'm not saying you have to do all of them or any of them
but you need to stop as much hemorrhaging as possible.

Sixth, get a plan. It does not seem to be as important to
use a specific plan as it is to use any plan. You need a
system. One good one is to line up your debts and start
paying them off. Pick your highest interest debt first and
devote every spare cent to paying it off. Then proceed from
there.

You can also try debt consolidation where you roll a lot of
higher-interest debt together into one larger debt at more
favorable terms.

Certified credit counselors are available locally (check
out http://www.nfcc.org) or online. There are valuable
books and courses on money management. Figure it out, get
help, or work with somebody. But you need a game plan.

Seventh, keep on. Getting out of debt is a bit like losing
weight: it takes hard work, dedication, and just dogged
day-after-day persistence.


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If you or a loved one are facing overwhelming debt, get
information on debt consolidation at
http://www.debt-consolidation-diva.com .

Student Loan Consolidation Programs And Repayment Tips

College education is important as it will path a way for a better career in future. However, with the rising cost in college education, taking a student loan is inevitable for certain students. Fortunately, there are student loan consolidation programs available which you can take to finance your studies. While taking student loan is a good move, it could be a double edge sword if you end up unable to repaying them, thus ended up deep in debt. This is most undesirable.

Taking a student loan is a commitment by itself. Before you take up any student loan, you got to discuss it with your parent at least. Collectively, draft out a feasible repayment plan that ever members agree and stick to the plan. In this way, you will be more motivated and committed to replay your student loan in good time

You can take reference from the below suggested pointers to do your planning. After all, you are going to college, right? Take this as your first research project, or if you like, a student loan thesis. If you have a plan, you are more likely to reply your student loan successfully.

The first point to take note is to do your own research. With the internet, you can search and compare so many student loan consolidation programs. Read and check each and every one of them thoroughly and carefully. Call or meet the agencies if need be. Be aware that not all student loan consolidation programs are equal. You should not short chain yourself but must take the effort to obtain the best deal.

The second point to take note is to keep in touch with your lender. The very basic thing that you need to do is to read every mail or email that they sent to you. You can get a surprise if they change certain terms and conditions which are not favorable to you or vice versa.

The third point to take note is to organized all your student loan documents and correspondences. As you progress through your studies and enjoy your campus life, you may just leave all your student loan documents and correspondences anywhere. If you do that, this is going to be a great mistake. All these documentations are important as it spells out your obligations. At the end of your college life, there is a possibility that you may have forgotten what are your obligations. You need to refer to them. Therefore, keep and organized them until you have repay your student loan completely.

The fourth point to take note is to attend all the required student loan counseling sessions. Usually, there are two sessions. The first session is often conducted when you first obtain the loan while the second one is conducted when you have graduated. Attending these sessions are beneficial as they will provide you with important information so that you can act in the most appropriate way.

The fifth point is to manage your expenses. In simple term, be thrifty. Spend only what is necessary. There is a Chinese proverb saying that, “Bitter first & Sweet Later”. This means that to work hard first and enjoy the fruits later. When you have the earning power later, you can then enjoy. Again, spend only what is necessary when in college.

The final point is to remind yourself of your obligations when you graduate. Take out all your student loan documents and read through your obligations. Also, take out the plan with you have drafted out together with your parents. Get a job and be ready to repay your student loan and be a responsible borrower.

Taking a student loan to finance your education is a good move. With so many student loan consolidation programs available, you are not shortage of it. However, you need to make a commitment to repay them when the time comes. The best way to fulfill your commitment is to have a solid and concrete repayment plan. Having your parents as your witnesses when you draft your repayment plan will certainly motivate you reply successfully. For more information, please visit Student Loan Consolidation Programs.

Williams Johnson involved in personal finance and home mortgage research. He likes to share tips and suggestions that can help people to manage their finance. For more helpful information, please visit: http://www.fibcool.com/student-loan/index.htm

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