Debt is built-up in a number of different ways, but one of the most unfair ways though which debt gets accumulated is that of student debt. If you don’t have the money to finance your studies and pay them off completely, then everything suggests that the only option you have is that of taking out a student loan. Society not only says that this is okay, but says that it’s pretty much the only thing you can do.
There’s also the promise of at the very least giving yourself a fighting chance to make something of yourself financially once you’ve acquired your qualification and you’re ready to enter the corporate space, even if it means you’ll have the burden of debt to carry on your back.
People who find themselves with the kind of debt that isn’t associated with their college studies cannot help but wear a bit of shame as they feel as if this suggests that they’re really bad at handling their finances. This is not the case. There is no shame in being in debt as there are so many debt traps all around us which in a sense glorify the type of life one is encouraged to lead, while at the same time leading us into debt.
If for example you need emergency medical treatment and the only way for you to get that treatment is to get into debt, what other option do you have?
Anyway, now that we’ve established that debt is a common problem which should be addressed head-on and not hidden from in shame, focus turns to what one can do to annihilate their personal debt.
Get fully acquainted with the exact figures
The only way you’re ever really going to realize success in annihilating your debt is if you get a grasp on the exact figures you’re dealing with. You can make use of the services of a debt counselor, but perhaps you’d be best served to go with one of those government sponsored ones who offer their services pro bono. Otherwise they cost money, which would be counter-productive since you’re not trying to spend money here.
You can do it all yourself as well, but just be sure to approach it objectively, as painful as it may be to put a price on your life. The important thing is to work out exactly how much debt you have and when exactly you’re going to see the day when you’ve paid it all off, based on the current repayment structure.
Consolidate and reduce
Debt consolidation is very much an option since the new owner of your consolidated debt will likely work out better repayment terms, i.e. repayment terms you can afford. To complete the debt annihilation equation, try to look for ways in your current spending structure through which you can reduce unnecessary expenditure, something which often just entails better financial planning. Could you trade your car in for one which is less of a gas guzzler, for example or could you perhaps move into a smaller property where you’ll pay less rent?
Every little reduction effort adds up, but don’t get tempted to blindly spend any extra money which appears to pop up as a result. Rather put it into your debt repayments, even if this means paying a little extra each time.