Debt has become the norm in today’s society. The average consumer debt in Canada has rose to over $27 000 in 2012 this is up 6% over 2011. This is the first time consumer debt has been over $27000.
In order to deal with any type of debt that you are trying to eliminate, the best process is to do it one financial issue at a time. If you try to tackle the entire issue at once it can become emotionally and mentally draining.
Some starting points to think on.
- Understand that you are not your debt. Your debt represents where you are not who you are.
- Start to keep track of your spending patterns. Keep a small note book of your purchases and your moods at time of purchase. This will help you to understand if some of your purchases are done for emotional reasons.
- Release any feelings of guilt or shame you may have associated with your debt. The past is the past move forward and let go. Changes cannot happen when you are constantly looking back.
- Begin a cash flow plan. Cash flow planning helps you to simplify things and creates boundaries that are easy to follow.
- Simplify your life. Get back to the basic. When was the last time you walked somewhere instead of driving or rented a movie from the library instead of buying one. There are lots of things in this world that are still “free” it is time to take advantage of those things.
- Talk to someone. If you are feeling extremely overwhelmed with regards to your financial situation, talk to someone. Do not keep it bottled up. Once we tell someone that understands and is non-judgemental, it can release a lot of the guilt and anxiety that we carry.
- Ask for help. One true rule of thumb is that if you cannot figure it out yourself then ask someone who can help you. Asking for help will free you!