Accumulating personal debt is something many of us have to deal with. For some, understanding interest rates, repayment periods and the overall cost of a loan is second nature. For others, perhaps the majority, loans are a confusing mine field and this makes it all too easy to accumulate debt to a degree that you experience stress, anxiety and depression.
The charity StepChange often speak about how debt can leave you feeling out of control with your life. They say that, “Debt can leave you feeling a shadow of your former self. You can feel its presence when you see the stack of bills waiting to be dealt with. You can hear it in your voice when you talk to your kids or argue with your partner. Maybe you feel it as knots in your stomach and tension in your head. And perhaps you’ve lain awake at night, turning thoughts over in your head, unable to sleep properly.”
Many people will relate to this, but by educating yourself on the mechanics of debt, the terminology, the affordability and so on, anyone can improve their financial situation and even get a ‘Good’ credit score. You can reduce stress and anxiety simply by admitting you have a problem and finding manageable ways to deal with it.
No matter how much debt you have, you can turn your life around. Personal debt can lie heavy on someone’s mind – even small amounts of debt. If you feel like debt is getting on top of you or that you don’t know how you will be able to pay it off or afford rent/mortgage payments/bills etc, then speaking to friends/family/the bank or a debt charity can be the first step to improving your situation.
And you can immediately make a change by altering your outlook on your spending. Wonga SA, the leading “same day loan” provider, say that you should ask yourself three questions before you spend any more money. You need to ask yourself, do you need this item? Can you afford this item, and how much will this item cost you overall? So, say you are buying a new sofa for your home. Do you really need it? Can you even afford it based on your credit limit? And, how much is this going to cost you overall, including interest charges on the credit and so on? After asking yourself these three questions you may well change your mind about buying this sofa.
So, the idea here is addressing your debt problem head on. If it’s worrying you, take action now, rather than later. Don’t put it off, as more interest is likely to accumulate and you could find yourself in a worse situation in a few months’ time.