There can be different reasons which would have leaded you into heavy debt situation. To come out from it was not an easy task for you and so it was a long stressful situation in which you would have lived. But what happens when you get out from such a debt situation. Did you start living the same life or do you go for a heavy cut in your life style?. Rather I frame my question differently- what you should do when you are out of a debt crisis? What is the way forward for you considering till few months or days back you were not able to pay back your debts.
The path is not easy as it takes time to deal with any situation like these. There is a family you support whose life goals also get stuck due to this situation. But it doesn’t mean you do a wait and watch. There is a lesson you have learnt and so now your financial situation demands some actions from you to ensure your financial well being can improve especially when you have a family to support.
Here is what what you should do when you are out from a heavy debt situation:
1. Avoid Thinking Of Loans– Once there is life set on credit it’s very difficult to get away from it. But when you fall in a debt crisis then they are the real cause for it. So first thing first forget about any loans for next few years. Do not make even any enquiries and move to a simple life without any credit. In worst case scenario you may have to defer some financial goals which you planned to fulfill by availing a loan.
2. Start Using Debit– Credit cards are the primary reasons for most financial debt crisis. You don’t realize it when you are utilizing it. It’s only when a default is done and the outstanding rises manifolds that you start thinking—I should not have used it. So when you have come out from that debt crisis- wiser to use debit cards. They have lot of advantages the best of which is that it helps you in bringing back money discipline in you.
3. Work On Your Goals– You didn’t do it that’s why you reached to the situation of a debt crisis. Had you planned ahead for all your goals you would have known that those debts were unnecessary spending. But now when you have realized its time that you bring your goals in your financial decisions. Start penning down what you wish to achieve in your life. Include your family dreams and aspirations to ensure you know what life they aspire to have.
4. Start Saving– For most a debt crisis completely wipe out entire savings and sometimes even they are not enough. It will be a while before you see your bank balance rising. But habits need to change and so savings need to be generated. No more you can afford to spend lavishly. You should start managing your cash flows more wisely so that you can start generating your savings. These savings will be the key to achieving your family financial well-being.
5. Refocus On Your Career– You would have even diverted from your career too much. When you are on easy credit spending what matters is the income you earn and so stability is less of a concern. But it takes a heavy toll when you fall into the trap. Your focus shifts to the financial worries and so you may have under performed or would have stayed low. In today’s environment even new jobs are difficult with bad credit behavior. Once you are out of debt then get back the focus on your career . You may have to bring a change in it if you want to bring healthy financial situation for you. Look at opportunities ahead and plan out for bringing a good stability in your career.
6. Spend Time With Family – You would have missed spending quality time with your family. Your financial worries would have impacted them also, mainly your partner. Out of debts a sigh of relief for all of you. What you need now is discussions with your life partner and more time with your children . This will ensure you get engage in healthy lifestyle living. Moreover, discussions with your partner will bring in front planning for your future and actions you need to take.
7. Create a Planning Calender – Keeping a discipline is not easy as you will have numerous task to take care. It’s difficult to remember every thing you have to do. You did not do it when you were in heavy spending. So now inculcating this behavior will do good for your financials. Pen down daily task in your dairy so that you have an idea what you are doing. Create a planning calendar and plan out your financial life more systematically. This will help you in keeping yourself within your means. Here is an example of how you can build your yearly planning calendar-
8. Generate Interest In Reading– Not many of us have a habit of reading of what we are doing. But it does help you in many ways especially in your financial decisions. You can read books, blogs, newspapers or anything where you feel most comfortable. Today even local newspapers cover lot of information. Slowly you will generate a curiosity to know about what you are doing and why whenever you take a decision.
9. You Can Donate Too– Well, it may not be a fit for all situation but it’s not even bad to donate for some noble cause. Along with other benefits it does give you a peace of mind that you are adding value to purpose of your life. The amount you give does not matter but the intention surely is. How you donate and where you do is a matter of search for you where you can even seek advice.
10. Keep Reviewing: Reviewing your financial situation is a healthy process to keep yourself away from mistakes. If you are doing it you are aware as to what’s happening with your money. You can have an annual financial health checkup or do it quarterly. Whatever way you choose a review process will keep you updated and it will be easy for you to accommodate changes.
They are very difficult times when you fall in huge debt. Not everyone has helping hand to assist you in getting out from that situation. If you did it, it would have taken a lot from you. But when you are out of debt then you have to bring your life to a situation wherein you can plan well. Give yourself a break, sit with your family or friends or a planner and plan wisely.
Have you gone through such situation?If yes, what changes you bought in your life when you were out of it?
Share your experiences……
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