When life is going well, financially speaking, everything has a much warmer and lighter glow to it; going to a restaurant, as an example, can feel like a pleasant and abundant treat rather than a heartburn inducing stress-riddled event that sees you reading the menu from right to left rather than left to right (i.e. your focus is more on the price than what you actually want).
This article faces the fact that a lot of people, right now, are enduring a financially tough month as a result of overspending in the run up to Christmas and New Year. January can be a hard time financially, and for a lot of people, the idea of financial freedom seems far out of reach – but this feeling of being on top of your finances means you can enjoy life so much more… as otherwise, the exciting travel, the luxurious beauty products and the fancy meals out are all twinged with the slightly bitter aftertaste of financial stress.
In this article, we’re going to look at the first step toward financial freedom – which is getting out of debt and keeping on top of your finances.
Being stuck in debt is a vicious cycle that can spiral out of control. Indeed, it is often a slippery slope due to the interest and late fees that accrue on overdue payments… and once you start missing a few payments, your financial position (and credit history) can quickly go downhill.
One of the best things you can do, on a practical level, is to consider consolidating your debt as this might be a good strategy to reduce your stress, rebuild your credit rating, and get out of debt in a sustainable way.
For most people, having debt in itself, isn’t the thing that is stressful – it’s the debt collection activities that happen when people fall behind, and the constant worry about what could happen next — it’s the phone calls, the threat of a ‘home visit’, the threat of court action, and even the prospect of bailiffs coming to remove personal items from your home.
Being pursued for debt can be an extremely stressful situation, and often times when people are in a serious financial position they are pursued by multiple creditors with multiple streams of debt collection activity; which compounds and spirals to such an extent many choose to then bury their heads in the sand by not opening letters, avoiding phone calls, and detaching from the situation. However, when it comes to debt avoidance really isn’t the best strategy, it can provide temporary relief but it isn’t a long-term solution.
The prospect of consolidating your debt into one larger loan in order to pay off the smaller fragments of debt offers immediate and permanent relief from multiple creditors banging at your door… it repairs your credit rating in the sense that you are no longer making several missed payments each month… and presuming you keep on top of the payments for the consolidation loan, it will actually start to rebuild your credit score!
Indeed, one the best ways to reduce your stress is to consolidate your existing debt into a debt consolidation loan (i.e. one lump sum). The challenge, of course, can be getting approved for a loan, if you are already in a financial pickle and have missed payments in recent months – but there are a number of products available even if your credit history has been damaged.
In short, a debt consolidation loan could be one of the best ways to break free from the vicious cycle of missed payments that spiral out of control… and in breaking free from this cycle, and starting to pay things off in an affordable and sustainable way – you are taking your first step to financial freedom; meaning you can live a much happier and enjoyable lifestyle.
** Note: This is a collaborative post, image and text has been provided to us for a small fee.