The trouble with debt is that it is quick to create but when it's payback time, it's not fun.
This is where some people experience a range of negative emotions and have no idea how to deal with them. It is these emotions that contribute to financial failure when it comes to debt management.
You feel overwhelmed, angry, embarrassed and stressed or opt to be in denial. Here's how you can deal with these negative emotions when trying to manage your debt.
Feeling embarrassed?
It is not a surprise if you're embarrassed by the debt you have. You may feel ashamed and regret the mistakes you made.
How to deal with it:
Understand that you are not alone in dealing with debt.
Everyone makes mistakes or has events that may have happened outside your control that may have led you to incur debt.
Instead of being embarrassed, be proud that you are doing something to get out of debt.
Feeling angry?
It's easy to be angry and blame others for landing you in debt.
You may be angry that you took a salary cut since you lost your last job and as a result you are finding it difficult to cope with debt. Perhaps your spouse's irresponsibility landed you in debt.
How to deal with it:
You need to understand that it is OK to calmly communicate this feeling to the relevant party. Do it in such a way that it is still possible to be productive instead of being hurtful.
Work with your partner to come up with a plan for how you will rectify the issue.
Are you in denial?
When debt is overwhelming, some people choose not to even deal with it.
They let bills pile up and sometimes they may not even realise how much they owe as they try to ignore it.
Denial makes things worse with late payments resulting in a bad credit record, higher interest rates and late fees that lead to even more debt.
How to deal with it:
Don't ever ignore your bills as they will come back to haunt you. As difficult as it may be, the sooner you face the debt by opening those envelopes, the sooner you will be able to take the necessary steps to get rid of it.
Write down every bill you have and make a plan on how you will start paying off what you owe. Don't just guess any amount, sit down and draw up a budget to see how much you can offer to pay and make sure you stick to that payment arrangement.
Debt makes you a slave and even when you don't want to work, you are forced to work simply because you've signed a poverty contract with creditors who will hound you day and night for their money.
Focus on being debt free by the end of 2016 and join the debt-free movement.
Join the union of debt warriors who are determined to gain victory over their bad financial habits and ultimately have cash in their pockets.
Write to Thedream@winniekunene.co.za. or comment on Twitter @WinnieKunene and Facebook: WinnieKuneneMoney
How to deal emotionally with debt - You can break the shackles
The trouble with debt is that it is quick to create but when it's payback time, it's not fun.
This is where some people experience a range of negative emotions and have no idea how to deal with them. It is these emotions that contribute to financial failure when it comes to debt management.
You feel overwhelmed, angry, embarrassed and stressed or opt to be in denial. Here's how you can deal with these negative emotions when trying to manage your debt.
Feeling embarrassed?
It is not a surprise if you're embarrassed by the debt you have. You may feel ashamed and regret the mistakes you made.
How to deal with it:
Understand that you are not alone in dealing with debt.
Everyone makes mistakes or has events that may have happened outside your control that may have led you to incur debt.
Instead of being embarrassed, be proud that you are doing something to get out of debt.
Feeling angry?
It's easy to be angry and blame others for landing you in debt.
You may be angry that you took a salary cut since you lost your last job and as a result you are finding it difficult to cope with debt. Perhaps your spouse's irresponsibility landed you in debt.
How to deal with it:
You need to understand that it is OK to calmly communicate this feeling to the relevant party. Do it in such a way that it is still possible to be productive instead of being hurtful.
Work with your partner to come up with a plan for how you will rectify the issue.
Are you in denial?
When debt is overwhelming, some people choose not to even deal with it.
They let bills pile up and sometimes they may not even realise how much they owe as they try to ignore it.
Denial makes things worse with late payments resulting in a bad credit record, higher interest rates and late fees that lead to even more debt.
How to deal with it:
Don't ever ignore your bills as they will come back to haunt you. As difficult as it may be, the sooner you face the debt by opening those envelopes, the sooner you will be able to take the necessary steps to get rid of it.
Write down every bill you have and make a plan on how you will start paying off what you owe. Don't just guess any amount, sit down and draw up a budget to see how much you can offer to pay and make sure you stick to that payment arrangement.
Debt makes you a slave and even when you don't want to work, you are forced to work simply because you've signed a poverty contract with creditors who will hound you day and night for their money.
Focus on being debt free by the end of 2016 and join the debt-free movement.
Join the union of debt warriors who are determined to gain victory over their bad financial habits and ultimately have cash in their pockets.
Write to Thedream@winniekunene.co.za. or comment on Twitter @WinnieKunene and Facebook: WinnieKuneneMoney
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