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How To Manage Debt And Get Debt Relief



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Debt


What's Covered


“Debt Stress Syndrome”: How Debt Can Cause Health Problems


If you've been struggling financially for months or years, this ongoing stress is often associated with high blood pressure, high cholesterol, diabetes and obesity.

Difficulty concentrating, sleepless nights, and changes in diet are just a few of the physical symptoms that debt stress manifests, leading to what is often referred to in the medical community as "debt stress syndrome." Researchers have documented the health effects of debt, and not surprisingly, studies show that money problems can increase stress levels and affect health.


How To Manage Debt?


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Tips

Tackle Your Financial Issues Head-on


If you're stressed about debt, the first step in finding a solution is to recognize the money problem directly. It's certainly easier to bury your head in the sand and pretend that everything is fine, but continuing to ignore your escalating financial problems will only put you in an even more stressful situation.


Be honest with yourself about how much you owe and who you owe. This integrity doesn't just apply to you. That goes for your partner, family, and those closest to you as well. Being unfaithful to your partner or family about your spending habits or current financial situation can create tension in your relationship and add stress.


When you're ready, go through your financial records and start making a list of all your creditors and how much each one owes. The amount of debt may surprise you, but take a deep breath and know that you have taken the first step towards paying off your debt and de-stressing.


Make a Plan to Pay Off Debt


Knowing who you owe and how much you owe makes it easier to plan your debt repayments. Having a plan to get out of debt can help ease the mental and emotional strain while giving you the hope and motivation you need to become financially free. There's a light at the end, and you'll feel a great sense of relief knowing that you're taking the necessary steps to get there.


Prioritize the importance of your liabilities. Everyone has different priorities, so it's important to decide which debt to pay off first. Here is how you can budget explained here.

A budget ensures that you're living within your means and also indicates when you'll be out of debt. If your income isn't enough to cover all your expenses, you'll need to adjust your budget.


A credit advisor can help you with this. Now that you know how much money you have to spend, you can pay off your debt strategically. Some believe that it is about maximizing payments on interest debt.


Identify Your Spending Habits and Make Changes


There are ways to deal with debt stress, but one of the most common way people find comfort during stressful times is to indulge in retail therapy. The more you do, the more likely you are to buy something to make you feel better. This is temporary. Continuing this thoughtless spending will undoubtedly lead to more money problems and more stress in the long run.


If you want to reduce stress, you need to take an honest look at your spending habits and see if you're an emotional spender. If you tend to reach for your credit card every time you feel down, there are healthier ways to manage and spend your money, with the added benefit of keeping the stress of debt at bay.


Then, when you feel like spending money you don't have, pay attention to the emotional factor. If you feel anxious, avoid going to the mall and hit the gym to unwind. If you're upset, skip online shopping and call a close friend and tell them what's bothering you. By paying attention to your emotional causes, you can make more conscious decisions that save you money and keep the stress of debt at bay.


5 Spending Habits You Should Stop Today

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Don't do!

Here are five common spending habits you should give up if you want to make your dreams come true.


1. Unplanned spending

Without a monthly budget, the money is gone and you don't know where it went. You will be like the average African broken. Too many people live above their means, but use credit cards to make up the difference. But if you plan to live on less than your income and save for emergencies, you're ahead of the game.


2. Pay conveniently

I feel guilty more than anyone else because the Chick-fil-A drive-thru is easy (and great). But if we're always paying for convenience, we're slipping money between our fingers.


3. Spend without tracking

Losing track of money spent or planned payments can set you back, so get rid of that money habit as soon as possible. Please do not worry, you probably don't need to pull out a pencil and grab a checkbook to go to town.

That is if you have a ledger. Thanks to technology, there is no excuse not to track your spending.


4. Making impulsive purchases

You probably know that impulse buying is bad news for your bank account. In fact, Americans spend more than $3,300 each year on impulse purchases. Before you reach for something that's not on your shopping list, ask yourself if you really need it or want!


5. Spending money to feel better

If you tend to click "add to cart" in a shopping therapy moment and forget about the problem, it's called emotional spending. Most of us are guilty of some kind. When you're having a hard time, just doing a little shopping to release your stress and inject some fun into your life feels good, doesn't it? However, this good fortune does not last long. If you want to feel at peace, don't let your emotions get in the way and focus on your goals!


Keep Track Of Your Credit Score


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Credit Score

It is important to keep track of your credit score simply because as mentioned earlier, credit is essential for the approval of a mortgage application. Plus, you'll be in a stronger bargaining position with banks. This will increase your chances of getting a lower interest rates on your mortgage and saving you money in the long run.


A person is considered to have poor credit if they have not paid their bills on time or have taken on large amounts of debt. Poor credit means a lower credit score, usually when below 580 on a scale of 300 to 850. People with bad credit have a harder time getting loans and credit cards.


That is why debt management is essential more especially when looking forward to making big purchases such as a home and more.


You Can Get Debt Help From a Non-Profit Credit Counselling Service


Debt is a topic that many of us don't like to talk about, so we tend to keep our struggles to ourselves and carry the burden. It leads to a constant state of worry and anxiety that can affect your life.


When people are stressed, they often seek help from a doctor or psychiatrist. But when the root of your worries and fears are financial problems, seeking help may not seem so easy. What many people don't know, however, is that debt problems can be resolved through nonprofit credit counseling services.


If you're struggling with money and have been struggling with debt stress for some time, the best thing you can do for yourself and your finances is to call a reputable nonprofit credit counseling firm. A counselor will give you a thorough look at your finances, put together a budget, and give you a list of options to help keep your finances on track all free.


Once you have a plan, you will feel tremendous relief knowing that you are well on your way to financial freedom. For you sake you can visit this website here for debt management assistance.


Who offers Debt Management Plans?


With so many companies out there today, each with different features and fees, choosing the right debt counseling company can be a difficult task. We've done the work and, based on extensive research and careful consideration, we've put together a list of the best debt counseling firms.

Our considerations include both well-known and lesser-known names. We hope that using our comparison tool will help you choose the debt advice firm that best suits your needs. Also, check out each company's user her reviews and experts to see how easy it is to get help when you're struggling with debt. Evaluated by over 200 debt counseling companies nationwide!

Which debts can I pay off with a Debt Management Plan?


A Debt Management Plan (DMP) helps you pay off your debt at interest rates you can afford. Find out more about how it works and which debts it can be used for. You can also talk to a free debt counselor about whether this is the best way to pay off your debts.

If you have non-preferred debt such as credit or store cards, bank overdrafts, or personal loans, a Debt Management Plan (DMP) may be for you.


A DMP provider can help you settle affordable payments and talk to your creditors. Normally, each creditor should be paid a small portion of amount, but this amount may vary depending on the provider. You make monthly payments to your DMP provider, and the DMP provider pays your creditors.

Debt management plans are available only for non-priority debt.

These include:

  • Overdraft

  • personal loan

  • bank or mortgage

  • money borrowed from friends and family

  • credit card, credit card debt, payday loan

  • Catalog, mortgage, shop loan debt.

The Main Benefit of Debt Management Plan

A debt management plan allows you to typically pay off all existing accounts within five years. This simplify your payments. Instead of remembering multiple payments and due dates, you will make one payment to your credit counselor.


Conclusion


Debt can be a serious problem that leads to health risks. The importance of debt management has been highlighted. The do's and don't with your money and spending habits have been given. The places to get help have been given. Overall keeping track of your credit score, finances and paying off your debts on time is very important. Join our waitlist switch and save to Glow app. Keep track of your spending, save, send and receive money with peace of mind.



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