Doug Constable On: Debt Solutions

Hi, everyone! Below, is an excerpt of my eGuide on debt solutions, which I wrote in March 2020. Obviously, a lot has changed in the financial world since then, but the fundamental principles of taking control of your debt before it controls you still apply in 2022! For a copy of the entire eBook (which is free!), please feel free to send me a private message.

OK, So You’re in DEBT!?

Debt is an issue that many Australians face, ranging from mild to severe. There are also many ways that you can deal with debt. The best solution for you will depend on many factors!

Straight off the bat, let me say that I have not written this to depress the hell out of you or to preach to you about what you did wrong! Instead, I am encouraging you to look at your debt problems squarely in the face, define the exact nature of the problem, and ultimately, identify the right people to help you create long-term solutions to prevent you from repeating the same mistakes!

There are few enviable people out there who somehow seem to avoid debt and the stress that comes with it, so you're far from alone. Nevertheless, debt is infinitely more than a simple financial problem, despite its prevalence. Superficially, your debts may start out as mere dollars and cents that you owe your creditors, but when ignored, it can cause adverse impacts on your emotional health and physical well-being; the longer it goes unresolved, the more you’re likely to suffer stress-related problems, such as depression, anxiety, cardiovascular problems, and insomnia—among many other ailments. The stress of debt and the impact it has across most aspects of your life can be debilitating— affecting your mental and physical welfare.

When you’re under a lot of debt-related stress, your decision-making capacity is often adversely affected. I can tell you with tremendous confidence, based on 40 years of business consultancy experience, that sticking your head in the sand like an ostrich won’t make your problems go away! Nor will thinking, ‘I just need this one thing to come off, and I will be a millionaire!’ pave a realistic pathway out of debt. The biopsychosocial model is a useful tool to understand the antecedents and consequences of debt. Why? Because debt literally affects everything!

If we go back a few years, the Australian Psychological Society’s Stress and Wellness Report (2011-2015) revealed that domestic financial problems are the leading cause of stress within Australia for several consecutive years. Does anyone reading this believe that the situation has improved? Or, like most, do you think it has only gotten worse, particularly considering the all-encompassing impact of COVID-19?

The NEGATIVE Impacts of Debt

I have no idea who it was who first declared, ‘Money cannot buy happiness’! Nevertheless, what I am sure about is that whoever said it was not standing at the base of a colossal-sized mountain of seemingly insurmountable debt! When we think about debt, it is closely followed by the word ‘stress’! Debt and stress are conjoined twins! Where there is one, the other is often right beside it! I would love to know what stress was called prior to 1936, when the term was coined by the brilliant endocrinologist, Hans Seyle. Hans Seyle defined it as, ‘The non-specific response of the body to any demand for change’. Across the country and across pretty much all sectors, there are thousands of businesses that have had similar experiences to one degree or another—all due to debt. Of course, we all have our opinions. Mine is this: It is infinitely better to be proactive than being forced to be reactive—especially when it comes to DEBT!

If you are in trouble, you’re in debt, you're struggling with tangible, scalable solutions, or you can see the writing on the wall, be proactive! Take action! Even if you are confident that you are on top of things but you want a financial health check, I am only a phone call or email away!