Tackling Debt Without the Tension

What many of us don’t realize is that what we give our attention to — sometimes in the form of anxiety — often exacerbates the problem.  Stressing out day after day over your bills doesn’t produce any positive results.  In fact, we’re usually inundated with so many setbacks that it may seem impossible to see the light at the end of the tunnel.  Here are three ways to resolve the monetary mishaps without the stress.

When in Doubt, Talk it Out

If you’ve ever been to a therapist, you know how great it feels to talk about your problems to an objective person.  When we are confronted with problems, the first people we turn to are usually friends and family but I can tell you from experience that’s not always the best choice.  Friends and family may have your best interest in mind but they’re not always educated in financial matters.  Instead, try contacting a debt counselor who is trained to advise consumers on financial matters.  Consolidated Credit is one organisation which prides itself on excellent customer service and a knowledgeable staff.  When you enroll in a debt management or consolidation program you’ll immediately be assigned a counselor who will be available to answer any debt related questions and inquiries.  In addition to that, they can also help you communicate with creditors to lower your balances, reduce your interest rates or even create a more manageable repayment plan.  What could be better than that?

“Guys, please tackle your debt without the tension”.  C.C. Showers argues with Ferris Layman in The Diviners by drurydrama (Len Radin), on Flickr.  This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License.

Budget Responsibly

What strikes fear in all people when it comes to financial matters?  The answer is uncertainty.  When you create a well organized budget, you eliminate the need to stress out over funds because you know precisely the inflows and outflows of all resources.  The best way to create a budget is to categorize your expenses in terms of fixed and variable.  Fixed expenses are the costs which stay constant month to month (rent, insurance, car payment, etc).  On the other hand variable expenses are those which can fluctuate based on market rates or lifestyle.  Gas prices are the best example because they tend to change frequently.  These are some other key steps in drawing up a budget:

• Make time for budgeting
• Use last year’s figures as a guide
• Create realistic goals
• Review your progress regularly

Don’t Wait Until It’s Too Late

Every day in the UK 274 people are declared bankrupt.  That’s approximately one person every 5 minutes.  Avoid being one of these statistics by taking action early on.  Information is at your disposal almost everywhere whether you consult professional financial managers, family members, or perform your own research online.  Free software is also widely available online to track your spending, create limits, and manage your accounts.  Some of the most popular tools include Microsoft Office Accounting Express, Mint, SimpleD, Grisbi, GnuCash and PearBudget.  These are all free options to help you tackle your debt and get on the fast track to financial freedom.