How People With Debt Can Still Live Normal Lives
If you're buried under a mountain of debt, it can be difficult to live a normal life. You feel as though you should always be paying off one loan or another instead of actually living your life and doing what you need to do.
Strangely, though, that's not how it has to be. It turns out that you can live a relatively ordinary life, even if your net worth is below zero. Here's what to do.
Change How You Holiday
Going on holiday doesn't have to be expensive. In fact, some of the best experiences cost little to nothing.
With camping, for instance, you can pretty much eliminate accommodation costs. If you go wild camping, you won't pay any fees at all.
You can also say goodbye to expensive food bills. Just cook over an open fire, and away you go.
You don't even have to leave the country. If the forecast predicts good weather, pitch your tent, and enjoy yourself. Those long summer evenings are rare.
Access A Different Type Of Loan
Most people have debt for good reasons. Students, for instance, go into debt to build their human capital at university.
Unfortunately, while the intentions are usually good, mainstream providers will often hold it against you. If they see that you're saddled with six-figure debt, they're much less likely to provide the money you want. Or if they do, the interest rate is sky-high.
Interestingly, though, we're seeing the rise of products for people with high debt levels but good prospects. For instance, physician mortgage loans are for doctors who have high earning potential but can't access standard mortgages because of student debt.
As these products become more common, it is going to become easier for the average person to access credit when they need it. And it won't matter what their net worth is so much.
Get Debt Counselling
Debt counseling is a catch-all service designed to help people who are running into the red and can't simply pay their way out of their current situation using income.
Some debt counselors don't do anything but offer advice. But many of them provide access to legal vehicles that enable you to cut the total amount of money you owe.
In general, if you have unsustainable debt, the sooner you go to a counselor, the better. Going early reduces the total value you owe and helps to stop fees from piling up. If you decide to declare bankruptcy, your terms are more favorable.
Focus On Your Life, Not The Money
If you have a lot of debt, it can be difficult to focus on the rest of your life. You'd like to make plans, but there is always money worry in the background.
If you find yourself in this position, try to focus on the productive aspects of your life and improve them. Don't spend so much time worrying about how much you owe and instead focus on building your earning potential and standing in your company. Once your income starts to rise, you'll be amazed at just how quickly your debt evaporates.