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Everyone has debt mentality: How to reject that and repay debt

Many people experience such similar situations at least once because they believe in the fact that “Everyone has debt” mentality.

However, it is high time you need to change this mentality to have a better financial future.

What will you do if you’re already in debt due to some past mistakes or emergency financial situations?

You keep hearing stories of people overcoming debt problems in their lives and wonder “Is this possible? Can I also get out of debt?”

Yes, IT IS POSSIBLE to get out of debt. What you have to do is overcome your “Everyone has debt” mentality.

Yes, some debts indeed help you build a good credit score; but, you need to manage it efficiently and repay it within the stipulated time.

The average consumer debt in 2019 was about 14.1 trillion. On average, an American was carrying about $90,460 as average personal debt.

This means that these people are facing debt problems and trying to find out a solution instead of having good debt and managing it responsibly.

So, if you’re worried about debt, you need to FIND A SOLUTION.

Ditch the “Being in debt” mentality

Tell yourself “I can do it”. Once you promise yourself, you’ll find a way out. If not, then you may take professional help to repay debt.

When you make a promise to solve your debt problems, you can embrace the lifestyle changes you need to do to repay debt till the last cent.

Change your mindset about money

You have to create a mindset that you’ll do everything to meet your short and long-term financial goals.

Plan a realistic budget to solve debt problems

Instead of viewing ‘budget’ as a thing you hate, view it as a road map to attain financial freedom, of which, getting out of debt is a primary one.

Start planning and following a realistic budget, and unknowingly you’ll adopt the changes in your lifestyle one by one.

Be aggressive towards saving a certain amount every month

It will help you a lot! You’ll have to start saving aggressively; that is, SAVING will be your first priority.

And, for this, you might have to make changes to your lifestyle for a few days. For example, stop eating out for a while and don’t go shopping only to spend time with your friends. Instead, visit your friend's home or throw a potluck party. Initially, it may seem a bit difficult to make these changes, but it’s worth it to end your debt problems.

Take the entire responsibility yourself

Be honest and admit that you’ve done wrong, as a result of which, you’ve incurred debt. It might have happened that a financial emergency has led you to the present situation; but, it’s ultimately your responsibility to manage your finances in a way to tackle such emergencies.

However, this doesn’t mean that you have to blame yourself. Admit your mistakes and start planning a strategy to get out of debt. Even small steps can take you a bit closer to getting out of debt.

Create a suitable plan to repay debt

Take out time and create a suitable debt repayment plan. By “suitable” I mean a plan, which you can follow until you repay your unsecured debts completely and be current on your other loans. If you want to use DIY strategies, you can use debt snowball or debt avalanche methods.

DIY strategies will work best for you if you can stay motivated to repay until the last debt on your list.

To succeed, you have to change your “Everyone has debt” mentality and instead promise yourself to be out of debt come what may.

However, if you want professional help to repay your dues, you can enroll in a consolidation or a settlement program.

In such a program, the consolidation and/or settlement company will also help you plan a budget to save money, which you can use to solve your debt problems.

Make a promise to yourself not to incur additional debt

This is important. While planning a strategy to solve your debt problems, do not incur additional debt. One of the best ways to achieve this is to keep your credit cards in a place where it’s a bit hard to fetch. Try using your debit cards so that you spend the actual money you have. However, restrict yourself to spending much; otherwise, it’ll be difficult for you to solve your debt problems.

Opt for paying cash instead of using plastic money all the time

Forget digitization for the time being.

It will be easier for you to save more if you opt for paying in cash instead of using the card. This way, you know how much money you presently have, and what amount you can spend.

Decide to stay motivated to repay debt come what may

To get out of debt, you need to make a promise to yourself - you will be out of debt come what may. This will help you form the right mindset. Most likely you’ll have to change some of your present habits. This might be a little difficult at first; but, you should realize that change is inevitable in life. So, it’s better to embrace the change as it’ll benefit you in the long run. Do not panic if you’re not able to change all your habits at once. It will take some time. However, every time you need to change a habit, remind yourself that you’ll have to stay motivated till you’re out of debt.

Promise to stay motivated till you pay the last cent

Even if you form the right mindset initially, it may become difficult for you to stay motivated especially when you’re dealing with large numbers. However, it’s not difficult to maintain the right mindset.

In such a circumstance, you can follow the debt snowball method to wipe away the smallest debts first. But, it’ll help you more if you follow debt snowball and debt avalanche together. Doing so, you can see your smallest debts bidding you goodbye and your high-interest debts shrinking, too.

Do not sacrifice your emergency fund to repay debt

Yes, paying off debt is necessary; but, building an emergency fund is equally important.

While ditching the “Everyone has debt” mentality, don’t forget to build an emergency fund. It will help you stay out of debt.

By now, you might have understood the reason behind your falling into debt problems; if it’s a financial emergency, or maybe the right mindset.

Think about a situation - you're using all your money towards solving your debt problems and a financial emergency comes up and lands you into debt, again! No, this time don’t let this happen to you. Instead, deposit a certain amount into your emergency fund.

Every morning remember your resolution

After you wake up every morning, remember your resolution - your motto to ditch the “Everyone has debt” mentality and to work your way out of DEBT.

Sometimes, you’ll feel like giving up as you’ve already paid a portion of your debt. But, DON’T STOP!

Whenever you think of giving up, remember the reason for what you’re doing…

To achieve financial freedom? To save for retirement? To have a life you’ve dreamt for long? To live life on your terms?

Whatever be the reason, it’ll get you going.

However, go easy sometimes when you reach a milestone - maybe, when you repay one debt.

It’ll help you to stay motivated until you repay the debts you want to and be current on your secured or other amortized loans.

So, I’m sure you’re already on the right track; you have started forming the right mindset to repay debt.

Do write your experience about your journey towards becoming debt-free. It will surely inspire others!

With proper help you can
  • Lower your monthly payments
  • Reduce credit card interest rates
  • Waive late fees
  • Reduce collection calls
  • Avoid bankruptcy
  • Have only one monthly payment
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