Have you ever had more week left at the end of your pay?
What’s worse is you are not sure where it all went, I mean really, you only brought lunch once this week, those shoes were on special and seriously we’ve all got to have that morning late! so where did it all go?
This is the reality of life for most of us and it’s always a slap in the face when we realise too late (in our early 30s when we decide to get married, start a family, buy a house) that we are broke, in debt with gasp, no savings!
We start frantically searching the internet “How do I get out of debt?”, “What is the fastest way to pay of all my debt with no money?” or “is it okay to sell my kidney to pay off my debt?” (Not even joking that’s a search).
Fortunately, there is no need to be so drastic, having been in this position myself I am very familiar with what I call the four stages of “No, I’m in debt realisation” it might even help give you to seeing your way clear of debt with all your body parts intact.
Debt Denial
“I don’t really spend that much money! So, I really aren’t in debt” ……really you aren’t?
Let’s try this, start by finding out what debt you actually have and list them, then print out 3 months of bank statements, grab a sheet of paper or even a spread sheet tile each column eg takeaways, coffee, lunch, shoes etc and put in the amount spent over that 3 months, total it at the bottom.
Now I am not advocating for drinking here, but you may want to have a strong beverage ready when you get a good look at what your hard-earned cash is actually going on.
Debt Anger
Might I suggest at this point you take a deep breathe, that’s right in and out, in and out, very good.
While you are still feeling the internal rage of all that spent (often wasted) money, this might be the time to dig deep and instead of internally berating your self-channel that anger into an action plan, you know the one “how do I get out of debt fast”.
Now the one essential thing you are going to need for this plan to work is a budget, with out a budget you will more than likely not succeed in your plan so get out the paper or spreadsheet and get started!
Debt Depression
I would skip over this but it’s like taxes and death it’s going to happen….sorry!
It’s all there in black and white your debts and my goodness it sure is depressing!! This feeling of financial despair will pass, just don’t give up ride it out and it will be worth it.
I would like to offer one piece of advice though, grab some scissors and cut up the credit cards, you don’t want to find yourself depressive shopping, please don’t pretend you don’t know what I mean we have all done it!
Acceptance
Hallelujah! You’re a few weeks into this debt plan, and you’ve accepted the debt, you’ve delt with the debt you even still have all your body parts and are now working the budget like a rockstar, you should be proud it’s not easy digging yourself out of debt, I know this for a fact, so well done and keep up the good work!