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Deal with your debt

June 18, 2008

I think most people would agree that there is a stigma attached to debt and spending problems.

People hide their debt from friends, co-workers, even family and spouses. It’s embarrassing to admit that you mismanaged your finances. But I have a theory: Hiding debt in some cases only adds to the problem.

The only way to reduce debt is to get on a spending plan and stick with it. Many times it can be a pretty restrictive plan that doesn’t leave a lot of room for “play” money.

If you are too afraid to tell your friends you can’t afford something and try to keep up with them, you’re going to quickly derail your budget.

I’ll use myself as an example. In my younger days I accumulated some debt. There was a combination of factors that led to my increasing credit card bills. But, one way that I continued to keep myself from getting ahead was trying to keep up a busy social (and therefore spending) life with my friends.

I was too embarrassed to say, “You know what, I can’t afford to go out tonight.” Or, “I really can’t afford a restaurant that expensive.”

Instead I would fork over the plastic and go out, all the while knowing I should be sitting at home.

Several years ago I realized that I had to do better with my money or I was going to be headed for some serious trouble. I took control of my financial situation and started making better choices.

I also started fessing up when I just didn’t have the money to do something. I was surprised to find out that I had other friends in the same situation or friends who understood.

The first time I bailed out on plans, I sent a text to my friend that said, “I’ve got to pass. I literally have like $15 to my name until payday.” I felt pathetic.

He responded with: “I’ve been there … I’ve been there.”

It was such a relief to read that simple message.

I recently read in a Wall Street Journal article that 11.8 million bank credit cards are delinquent. While it is a relief to know you’re not alone, I don’t find that number any kind of relief. It means there are a lot of people who need to take control of their finances.

That’s the important thing for those struggling under the weight of debt: Take responsibility and get help. Call a non-profit credit counseling agency, like Advantage CCS, and go through a comprehensive credit counseling session with a certified counselor. The counselor should help you create a budget and an action plan to help you manage your finances and reduce your debt.

Debt is not a problem that will go away if you ignore it, but you can take steps to better your situation.

Written by admin · Filed Under Debt, Credit Counseling 

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