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When you are having money troubles, it can be hard to accept your situation, let alone reach out for debt help services. The good news is, once you are honest with yourself, there are plenty of things you can do to get out of debt. You just need to overcome these five hurdles:
1. Being Honest With Yourself
Okay, we already mentioned this approximately three seconds ago, but it is the most important hurdle one has to overcome to get out of debt.
Nine in ten students in America experience anxiety because of their debt, and over 50% have experienced depression because of it. Those mental health woes linked to debt continue across all age groups, making it much easier to hide from the issue than address it.
If you can take the step to face your fear, you will find that whilst the initial reality is challenging, you will feel lighter and more in-control after admitting your debt problems.
2. Changing Your Lifestyle
In order to get debt-free, you have to change the way you live, which can be a major hurdle for many people. You may have to eat out less, have your hair done less, maybe even skip your holiday this year. It’s not easy, but adjusting to life without the things you can’t afford will lead you to a debt-free future, which is a great reason to cut back.
3. High Interest Rates
Unfortunately, high interest rates can be a huge hurdle to overcoming debt. The higher your interest rates are, the less of your actual debt you’re paying off.
In order to overcome this hurdle, you can pay more every month to cut into your original debt more. You could also consider contacting all the companies to whom you owe money to ask if they can lower your interest rates.
Another option is consolidating your debts so that they are all paid with one monthly sum without all the associated interest.
4. Lack Of Support From Your Friends & Family
It can be very hard for your friends and family to get on board with your new debt-paying lifestyle when it directly impacts them. It isn’t just you who’s missing out on holidays – your kids and partner will have to miss out too. Your kids may also have to accept less for birthdays and Christmas, and perhaps cheaper brand foods, or less pocket money for a while.
Your friends may have to adjust to doing free activities like hiking or cooking together at home. This equates to a lot of adjustment for everybody around you, and it will take some creative solutions and explaining on your part to get them on board.
5. Unexpected Expenses
Whether your phone bill is suddenly higher, you have an unexpected dental emergency, or the dishwasher breaks, unexpected expenses will always crop up to challenge your debt repayment plan. Try not to panic, and if you can, factor in the potential for unexpected expenses from the very beginning of your budget. This will help buffer the impact when they do crop up.
Unexpected expenses might set you back a little, but with determination and a continued honest attitude to your situation, you will get back to your debt repayment plan soon enough.
You Can Become Debt-Free
By being honest and resilient, you can overcome the hurdles above and become debt-free. The first step is honesty. If you’re brave enough, to be honest about your situation, you’re going to be strong enough to work your way out of debt for a better future.
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