Overwhelmed by Debt? 8 Ways to Reclaim Your Finances
Are you overwhelmed by debt? Unfortunately, the emotional side of debt is something that many people struggle with. After all, a mountain of debt can seem insurmountable if you look at it from the wrong perspective.
Fortunately, it is possible to change your mindset towards debt and reclaim your finances.
Ready to take action? From looking at the big picture to having a positive mindset and more, here’s how you can take control of your financial health.
How to Tell If You’re Overwhelmed by Debt
If you aren’t sure whether or not you are overwhelmed by debt, here are some signs to watch out for:
- Denial
- Depression
- Financial fears
- Embarrassment over purchases
- Stress
- Potential relationship friction
Any of these signs could have a negative impact on your overall well-being.
It’s important to remember that you aren’t alone if you are feeling overwhelmed by debt. In fact, a recent survey found that 77% of Americans say that they feel anxious about their finances.
Although the knowledge you aren’t alone can be comforting, it might not help you eliminate the negative emotions surrounding your debt.
The good news is that you can tackle your debt and start to feel more comfortable about your financial situation.
How To Start Reclaiming Your Finances
Ready to take action and eliminated the feeling of being overwhelmed by debt from your life? Here are the eight best steps you can take to move your life in a positive direction.
1. Focus On The Good
As you start your debt repayment journey, a positive mindset is critical. Although it can be a challenge at first, make an effort to identify the good things.
For example, the first positive is that you are making a great choice to repay your debt. By learning more about your options and choosing to tackle your debt, you are moving in the right direction.
Keep an eye out for good things or wins in your financial situation as you start paying off your debt. When you find a positive moment, don’t forget to celebrate.
Related: How to Celebrate Paying Off Debt Frugally
2. Look At The Big Picture
When you are focused on the smaller details, it can be easy to get caught up in a state of overwhelm. Taking a step back to look at the big picture can help.
Take advantage of the free account offered by Undebt.it to help you see exactly how much debt you have. When you have a clear understanding of the big picture, you’ll be better prepared to move forward.
3. Adjust Your Budget
If you feel overwhelmed by debt, it likely makes sense to make paying off debt a priority for now. Once you feel like your debt is more manageable, you may decide to refocus your financial priorities.
Once you make debt payment a priority, you’ll have to adjust your budget. This choice might require you to sacrifice in other areas, but the feeling of control over your debt can be worth it.
Related: YNAB Review 2021: The Best Budgeting App?
4. Increase Your Income
If you aren’t able to pay down debt on your current income with your necessary expenses, it might be time to consider a side hustle. With the help of a side gig, you can increase your income.
When the new funds come your way, funnel them towards your debts.
As you look for side hustle opportunities, start with something flexible that doesn’t require an upfront investment. You don’t want to go into even more debt to get a side gig up and running.
5. Don’t Feel Guilty, Just Move Forward
It can be tempting to feel guilty about the choices that led you to go into debt. Remember that wallowing in the past will not help you change your situation.
Instead, give yourself permission to move forward.
Even though it can be easy to beat yourself up about the past, that is not a healthy way to tackle your debt. Look at the problem and face it head-on.
Related: 11 Life-Changing Reasons to Pay Off Debt
6. Get Help Making a Plan
If you need help seeing a clear path to eliminating your financial troubles, talking to a financial advisor might help. With professional guidance, you can create a plan to help your reach your financial goals.
If you don’t want to talk to a financial advisor, a more affordable option is a debt repayment tool like Undebt.it. Creating an account is free, and Undebt.it offers multiple payoff methods to help you figure out the best way to eliminate your debt.
7. Talk to Friends and Family
Although many see finances as a taboo topic, money is an integral part of our lives. With that, it can help to talk about your money plans with family and friends.
Of course, not everyone will be open to this type of conversation. However, having even just one close family member or friend who is willing to listen and provide emotional support on your journey can help you stay motivated.
When you are ready, open up a communication pathway with your support network. You might be surprised that some are in a similar situation. Others may have been where you are standing now. Regardless, emotional support can help.
If you don’t feel like you have the right person in your life to discuss money with, then consider working with a financial therapist to provide support.
8. Learn More About Money
When you don’t have some baseline knowledge about money, handling your debt can feel like flying blind. As a result, it is not surprising that you feel overwhelmed by debt.
Instead of continuing to navigate without the right information, take the time to pursue financial literacy. More information about money can help you increase your confidence as you tackle your debt.
The Bottom Line
Taking action to improve your finances can be the right course of action if you are overwhelmed by debt. As you move your finances forward in a positive direction, you may feel your confidence rising.
When tackling debt, take advantage of the free resources offered by Undebt.it. With many payoff plans available, you can chart a path towards a debt-free life and kick your stress to the curb.
