How I Manage My Debt


Each one of us is struggling with different life problems, especially finances. Aside from my personal life and health, I also strive with financial difficulties. It can be very frustrating, and you may not know what to do.

Sometimes, I find myself in a situation where I cannot pay my bills and rent on time. It's depressing. I cannot borrow money anymore without assuring them when to pay it back. Suddenly, an emergency case pops up when I try to pay the debts. It takes a lot of courage and strength to face it head-on and what to do. The most important thing to me is to place food on the table and satisfy their needs.

I am not a master in this field of handling money. As I go along this path, I think I will learn how to pay my debt. It may not be as quick as they want it. The important thing is I did pay them. Here are the ways how I am managing my debt. 

1. Prayer
Sometimes, problems make us sad, depressed and anxious. Prayer is the most powerful tool, though you feel weak. Ballooning debts is a big problem. The way I pray to Him is like he was sitting beside me. I asked what will be our meal for tomorrow. How will I pay our debts and bills? I've said it many times. I do not want to write because I want to be a lead researcher and an Amazon VA. God's answer to my prayer is a writing gig (always). It is one way to earn money and pay bills and debts. I thank Him for the blessings. You may wonder why I wrote this. The reason is whenever I have problems in life, health, and finances - I always ask/pray for His guidance before I do anything else.

be calm

2. Be Calm
Sometimes looking at how to pay my debt, bills, and other expenditures makes me worry because the due date is near and a collector is around. Do you keep on thinking about where to get the money for payment? Don't force it if you have none. Be still and relax. It clears your mind on what you're going to do to solve the problem of paying your debt. Remember that stress is not good. It returns an awful predicament to our health. 

3. Get Help From the Others
Getting help from others is sometimes crucial. So be prepared and be open. Talk to your relatives and friends about your situation. Tell them why you need their help. 

4. Jewelry
I suggest if you have pieces of jewelry, you might pawn one or two of them. It depends on the amount you need. My mother had given me her bracelet before she died. I pawned it because we do not have money for food and the hospital.   

5. Financial Applications
You may be unaware of the existence of financial applications or perhaps even the fact that there is a way to get out of debt. They design these applications to help people pay their bills or debts in a practical, manageable and straightforward manner. They may sound complicated at first, but once you understand what they are, they make sense.

6. Make an appointment with your creditors and negotiate with them
It is hard to manage your debt, but you can get help. I'm writing this blog because I was overwhelmed with debt. Sharing what I've been going through might help other people who face the same challenges.

A lot of people have bad credit. For example: if you have a small bad credit loan, you cannot get another loan or a mortgage. I have struggled with a loan, and I am sharing what I know about managing your debt to help those in the same situation. 

7. Increase your income
When you are facing money troubles, you find a way to augment your income. There are short-term financial solutions for people who struggle with bad credit:

  • Use your hobby to earn money like sewing, cooking snacks and delivering them to their home.
  • Identify how to join businesses that make passive income
  • Learn a skill or upskill yourself if you want to look for a job online
  • Acquire a second job, if you can.
  • As you intend to look for a second job, be prepared or consider the tax consequences and avoid more tax debts.

The truth is that an average person won't be able to get out of debt through willpower alone. It's more than just wanting to kick your debt out of the way. 

I strongly recommend paying off things with the highest interest rates first. As interest most likely profits the debt collector more than you. The only exception is when you can negotiate a lower interest rate, which may be possible if you initially put less in the principal amount or pay more than the monthly minimum for a few months. Be aware that even a lower rate reduction can make a big difference in the long run. You may also want to use other means of reducing your debt, such as finding ways to increase your income or cutting back on unnecessary expenses.

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