Go For Broke

Go For Broke

Are you in massive amounts of debt? Do you feel like you are drowning in a flood of bills? Do you have creditors calling you and making demands? Do you know what you are going to do about?

Unfortunately most people think that they can solve the problem all by themselves. Well I am here to tell you that 99.99% of the time that is not possible. You see, the same thinking that got you into this debt problem will not get you out of that problem. You are going to need a new way of thinking and that can be quite difficult to do.

Where you are now in life is the accumulation of all your thoughts and actions (and lack thereof) you have ever though and done. You have decades of your current way of thinking crammed into your brain, you cannot just change it overnight. That will take time and you will need help. However, the help you need in changing the way you think is not so much about finances, but about how you change the way you think. Because if you don't change the way you fundamentally think, you may pay out all of your debts, but you will be back in the same problem in five years. That is where you need the help.

However you must be willing to ask for help. And before you do that you have to understand where you are first.

Acknowledge the problem

No alt text provided for this image

Before you can fix any problem you have you need to be able to admit that you have a problem. No drug user, alcoholic or problem gambler can fix their problem until they admit to it. No matter how much another person may tell them they have any issue, unless the drug user admits to themselves they have a problem, nothing will change. The same with debt.

Before you can fix your debt issue, you need to admit to yourself that you have a debt issue. You need to stop thinking that the pay check coming in this week will solve the problem. It didn't last week so what is different this week? You need to finally give up the charade that you are in control and say, “I have a problem with my finances, AND, I don't really know what to do about it.” I would even trying say that out loud right now, because until you do, you will continue to try to convince yourself otherwise.

Addressing the issue.

Once you have admitted to the debt issue you can start you work on it. Now for the hard, hard reality. For most people, they will have to face the truth that they are going to have to lose something. I would believe that the reason for your debt being so sky high is that you have bought too much of what you really can't afford. You have lived well beyond your means and now you cannot make the repayments on all of it. You are going to have to decide to let go of something so that you can get back on top of the situation.

Unfortunately, most people in a bad debt situation never get to this spot by themselves. They never take control and are forced by the people to who they own money to give up items. Cars, boats, furniture, houses and so on are repossessed and sold so that the creditors get their money back. And none of the money earned in the sale goes back to you. The creditors take the lot and you are left with nothing.

No alt text provided for this image

If it is possible you can take control of this before other people do. You can sell your own possession first and have control over where the money goes. And here's a hint, it goes on your debt. It goes to pay a debt off or down to be more manageable, not on anything new. Sure, you still lose your possessions, but at least it is on your terms, and that will be far more beneficial to you and your family mentally and emotionally than having someone else walk in and take it from you.

Stop spending

The next step is to stop spending. Stop buying unnecessary stuff. You are really going to have to go without for a little while. The little luxuries, which have most likely become an everyday common things, need to be stopped. Remember, it was the excessive spending that got you to this point in the first place.

Once you have curtailed your spending you need to take any extra money and start paying down your debt. Again this is taking control of the situation and will keep other debt collectors away from you. 

If you are in a better situation than you thought I would even suggest trying to put a little away for savings. By saving money you create a buffer for unexpected expense and it helps to build your self-esteem.

Consolidate debts 

If you have paid some debts off or down, talk to someone about consolidation. My suggestion, and I am not an expert in this, but I would talk to my bank about putting as many debts together so that you only have to make one payment, and often they have a lower combine interest than all off the individual loans. As for credit cards, get a bank loan to pay it out, the interest rate on credit cards is staggering, and then cancel the card and cut it up. Don't keep it, or get another one.

Do it tough for a little while.

Remember it took you a few years to get into this debt laden spot, so don't expect it to change overnight. To get out of where you are it will also take a couple of years. The benefit however, is every day that you pay off a debt and fix your finances the stress you are feeling decreases. You will start to see the light at the end of the tunnel come closer. Yes, you are going to have to do things tough for a little while. You will have to say no to a few things until the debt is in a more manageable state and your savings have increased. But you are now doing it to achieve a better outcome.

Financial intelligence

What we have spoken about here is just the bare basics of financial intelligence. In order not to get to this point again you will need to learn more. You will need to put some real work in in learn about money and finance. Then you will really start to get ahead of the game.

This is a learning experience.

This event in your life is a learning experience. You can learn from it, if you want. You can take control of what is happening and learn what went wrong, how to fix it and how to never do it again. Or you can chose not to learn from it and be doomed to repeat the same thing over and over again. Unfortunately too many choose the second.

This whole will be embarrassing for you, and you may lose a lot of your possessions. It will a big hit to you ego and very humbling. We all do the wrong thing, which is not the problem. The problem is, when we do the wrong thing and fail to recognize it, recognize it but don’t change or change but don't learn from it. But for many people this type of situation has been the catalyst for them growing as a person and going on to not only getting out of trouble but becoming wealthy.

It is time to put the ego aside and make your decision. Go broke with not control over what happens learn nothing and lose everything, or take a hit to your pride and ego take control as much as you can over the situation, loose a few things and learn how to be a success. It’s your choice, but I know what I would choose, and I did, and to give you a hint is was the second option. I would also make that choice ASAP, because the longer you wait, the more likely someone else will choose for you.

Asides from we have talked about here, there are a few other issues to consider when dealing with debt. Health problems, marital problems and little chance of retirement must be considered. These are all issues for another article but in short, people suffer health issues from stress and poor diets just to name a few. A lot of break ups in relationships involve money and normally from the lack of. And the big issue, is if you have debt, crippling debt, you will not be able to afford to retire. Read The Retirement Lie for more information on the last bit (https://www.dhirubhai.net/pulse/retirement-lie-terry-shadwell/)

But it does not have to be that way.  

Ask for help

Now, I know that not everyone will make the right decision and other people will take control of their financial situation. Some just want to ignore the truth and pretend that everything will just work out for them. Of course it never does. But that does not have to be the same for you. You need to ask for help to change your way of thinking.

You need someone that can mentor you and help you see a better and sustainable way of thinking about your finances. You need a mentor that has done it before you. A mentor that has experience of both success and failure and has grown through both. A mentor to help you think long term rewards, not short term gratification.

But you need to be willing to be humble and say “I have a problem with my finances, AND, I don't really know what to do about it.” Once you do that you also need to say, “I need a mentor to help me”. But understand this, a mentor will not come to you. You will not have hundreds of potential mentors lining up at your door begging for you to let them guide you. They don't need to, they are already successful and do not need your help. Part of your journey, and the start of your debt reduction begins with finding a mentor. You will need to go to them, and you need to be willing to listen to their advice and apply it. I did, and it has made a world of difference in my life. And now I make a world of difference in people's lives who have asked me for my help.

So if you want to get out of debt and make your life to be better you just have to decide to ask for help.  

要查看或添加评论,请登录

社区洞察

其他会员也浏览了