If you're in a situation where you are dealing with paying back a large debt - student loans, business loans, credit card debt, etc. - then you know very well how frustrating it can be.
In fact, rather than actually face what is happening, it may be easier to hide and ignore your financial situation. If this is the case for you then use our tips to help you reclaim your power and pay down your debt.
Realize You're Not a Victim
One of the biggest reasons people can't seem to pay off their debt is because they feel victimized. After all it's a popular media story - evil credit card companies, shady bank practices and horrible student loan policies.
Rather than casting blame and victimizing yourself, become the hero of the story. Realize that you do have the power to turn this around and it can be done. Millions of people have paid off their debt, and you are no different than they are.
Clarity Comes From Looking at Numbers
If you're one of those individuals who don't even open their statements out of fear then it's time to change that. Avoidance is not going to help your cause and your debt isn't going to magically disappear.
In order to create a debt repayment strategy you need to actually know what's going on. And believe it or not, there's great power and relief that comes from knowing exactly what you owe, who you owe it to and what the APR rates are.
Clarity to find a solution comes from actually seeing and admitting what's going on. Face the numbers, put them in a debt repayment calculator and start creating a plan to pay it down.
You Don't Have to Make Sacrifices
The world of personal finance can sometimes seem like a drag because they throw around phrases like "You have to make sacrifices to pay your debt." Truth be told, why would anyone willingly do something that makes them feel awful? There's no pay off in that!
This is a good opportunity to flip the script. While you don't necessarily have to make "sacrifices", you do need to make choices. Choices that may include doing something you don't particularly want to do. However, if you see these actions from the perspective of choosing to do them then it's more empowering and less degrading.
For example, instead of saying "I can't afford those shoes because I need to pay down my debt" try saying "I'm choosing not to buy those shoes so I can pay down my debt."
It may be subtle but it makes a huge difference in how you feel and behave with your money.
Tracking your spending and creating a budget are also great ways to make sure you don't spend money on things that won't help you achieve your debt repayment goal. Again, because you're choosing to create a budget and stick to it.
At the end of the day it all comes back to choosing to see your finances in a more empowering way, regardless of how much you owe.