It’s a four-letter word that evokes fear in millions of Americans every year. We’re talking about debt, that seemingly common word that so many of us would rather ignore and push aside for another day.
Did you know that the average U.S. household holds more than $135,000 in debt? And while this overarching number factors in all types of debt including credit cards, mortgages, student loans, and auto loans, it’s still a pretty scary figure.
Thankfully dealing with your debt doesn’t have to be a scary experience. If you find yourself apprehensive about managing your debt, we can help! Below we’ve provided four helpful ways to face your financial fears.
Be Honest with Yourself
One of the worst things you can do when dealing with debt is to deny that it exists. Often, when we find ourselves dealing with debt, it can feel uncomfortable to think about. We can become overwhelmed, anxious, or even embarrassed. As a result, we may ignore incoming bills or calls from collectors.
Pushing aside outstanding debts won’t make them go away and instead can make the situation worse as time passes. So how can you overcome this phase of denial? The key is to be completely honest and transparent with yourself. Remember: dealing with debt is nothing to be ashamed of. You are not alone. You have the strength to get through this.
Once you have the right mindset and can effectively identify how much debt you really owe, you’ll be able to make a plan and confidently face all of your debts head on.
Understand Your Options
After you’ve identified and mapped out all outstanding debts, the next step is to gain a solid understanding of your financial options. Depending on your current financial situation and the type of debt you owe, you may find that using one or more common debt relief strategies is an effective solution for managing your debt.
When it comes to resolving debt, there is no one-size-fits-all approach, which is why it’s important to find the right solution that works for you and your financial needs.
Set Realistic Financial Goals
When you’re dealing with debt, it can be difficult to think about anything else. But don’t forget: while you’re working hard to manage your debt, it’s also essential to focus on your future.
Think about your personal financial goals and why they are meaningful to you. For instance, if your goal is to build a $1,000 emergency fund, then you’ll want to create a realistic plan for setting aside money every month towards that goal while still paying down your debt. Remaining consistent is key to achieving your financial goals—even if you have to lower your contributions in leaner months.
Know That it’s Never Too Late
Whether it’s been six months or six years since you first accumulated debt, remember that it’s never too late to take control of your financial well-being. Don’t be discouraged by past financial situations or previous spending habits. There’s always time to turn things around! So regardless of when you decide to start, know that you’re not alone in this journey. Making the decision to tackle your debt proactively will be one of the greatest things you can do for yourself and your family.
Ready to Take on Your Debt?
Don’t hide behind your financial fears any longer. Start your path to financial freedom today! At ACCS, our experienced debt professionals can help you put the pieces together and find the debt solution that is right for you. To learn more, request your custom debt relief plan today, and a debt specialist will reach out within 24 hours.