What To Do If You Are In Debt

Man in debt

"A man in debt is caught in a net", wrote John Ray. Molehills of debt build mountains of worry. Debt consciousness is actually poverty consciousness. It is important to pay up your creditors and sustain your personal integrity. The solution is to come up with a repayment pattern that accommodates your regular savings as well as your repayment.

It can be very dull and depressing waking up every morning and working hard with the sole aim of repaying a loan. You need something positive to brighten your thought and instil meaning into your schedules.

If all you do is simply pay up your debt and mortgage, month in and month out, all that preoccupy your mind is debt. You tend to think about nothing else. Remember that what you think about expands. You tend to breed other debts. You certainly don't want this. You want to progressively nullify the aura of negativity and bad luck that attend all debtors. You want to inch your way into positive frames. You want to imbibe this idea of paying yourself first.

There is a classic approach that I honestly urge you to adopt, should you catch yourself beginning a saving programme while you still owe others. Of the 100% that constitute your income:

1). 60% will go to buying essential items you need.
2). 20% shall repay your loan.
3). 10% will go for charity.
4). You pay yourself the first 10%

You will begin by making a comprehensive list of all the people and organizations you owe. Always remember that they love you and trust you, and that was why they loaned you the money in the first place. You will need to talk to each of them after you have carefully mapped out the repayment pattern. Based on a fair, even and just distribution, you would have figured out the amount you can afford to repay each of them per month.

Be very honest and considerate with yourself and with them. You will need to be also prepared, as some of your creditors may welcome your plans and thoughtfulness, while a few others may be disagreeable and needier. You must be friendly but stick to your plan. Simply tell each of them to the effect that, "this much is what I can repay you each month, but no more".

You will then need to stop further credit purchases. Buy only in cash and stick to no more than 60% of your total earning. The 10% saved (invested) will grow and continue to serve as a menthol, a source of motivation, a reason to endure and a valuable tool for perseverance. It removes the bitterness and emptiness always inherent in all repayment patterns. You will then do an extra job on your past expenses to ensure that you can now buy only what you need, not merely what you want.

Confucius said: "He who will not economize will have to agonize", and the great Calvin Coolidge wrote that: "I favour the policy of economy, not because I wish to save my life". Eliminate luxuries and negotiate for a price reduction at all times.

This idea helped me a lot and has proved to be valuable. It granted me much more confidence to believe in myself. I derived a feeling of security, incalculable hope, and a sense of preparedness for any opportunity for advancement. I discovered that there is much greater pleasure in running up savings -- that I never wished to spend more -- than the pleasure derived in spending it.
Alade Habeeb

I am a writer with a sense of creativity to write on multiple topics. I create engaging, thrilling and entertaining contents and I always take the time to edit my work well before publishing. I follow all the latest trends and read about recent happenings in the entertainment industry to always update my readers.

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