People who have debts find it hard to sleep at night. The feelings of stress and guilt around being in debt have a massive psychological effect and interfering with your sleep can just be the starting point. Debt can have an indirect effect on your health and well-being and also cause problems in your relationship, quite apart from the practical realities of owing money.
Unless you take steps to deal with your debt, none of these symptoms are going to get any better, and of course, if you don’t start paying off your debts, the amount you owe will just increase through charges and increased interest on unpaid bills.
Although the amount of debt you have may feel insurmountable, there is always a way to work clear of debt. Different options will be open to you, depending on how much you owe and your personal circumstances.
If you are in a position where you earn more than you need to spend on the household every month, then you could work to a strict budget and use any excess income to gradually pay off the debts that you have. You can take steps to minimize your outgoings – such as getting the best deal on utilities that’s on the market, and by cutting your groceries bills – so that you gradually have more left over each month to pay off the debt.
Not everyone in debt will be able to work their way out of it by themselves. It may be that you can’t generate any leftover income, or can’t see how to do so. In this case, you may want to enter into a debt management plan with a debt management company or a financial charity that offers a similar service.
A debt management plan is a more structured way of paying off your debts. The debt management company helps you work out what you need for your household budget, then fixes an affordable monthly payment from you which is then redistributed amongst your creditors on your behalf. There’s a fee for the service, but the company should be able to negotiate interest rate and charges freezes with creditors on your behalf and it will take a lot of the stress out of the situation for you.
Whichever route you take towards being debt free, it’s bound to better than trying to avoid the issue. It’s not going to be an easy ride, but with perseverance, you’ll get there.