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Debt is something lots of people will encounter. It can happen at any stage of life — whether it's due to student loans, credit cards, or life events beyond your control like illness or job loss.
Regardless of how it comes about, it can be a stressful experience. But debt doesn't have to feel overwhelming or unmanageable. With the right mindset and strategy, you can take control of it.
Here are some tips for managing debt when you're facing it for the first time:
Break the stigma
Debt can feel isolating because of the stigma attached to it. Don’t let any stigma about debt influence how you feel about yourself.
There is there is nothing ‘bad’ about debt, it’s just money that you owe. You can manage your financial situation and solve debts with time.
Shifting your mindset from "being in debt" to "having debt" can be a small but powerful way to reduce any negative feelings associated with it.
Talking about your debt with someone you trust, or seeking help from a financial advisor or debt charity, can also lift the weight off your shoulders. Changing your mindset can help you feel more empowered and begin addressing it.
Don’t bury your head in the sand
Ignoring debt won't make it go away and can lead to bigger problems like missed payments, additional fees, or growing interest. It's important to face your debt, even when it feels uncomfortable or overwhelming.
Stay aware of your finances with regular check-ins. Whether it's daily or weekly, keep an eye on your bank accounts, upcoming payments and any changes in your debt balance. This can help you stay on top of repayments and avoid further financial stress.
Know your numbers and make a budget
Understanding the ins and outs of your debt is key to managing it. Know the terms of your borrowing, including the interest rate, the total amount owed and the monthly payments required. This knowledge will help you create an effective debt repayment plan.
It's also important to budget carefully. Make sure your budget accounts for your minimum repayments, and if possible, allocate extra funds to pay off your debt faster. Whether you prefer tracking your money with a pen and paper, a spreadsheet, or an app, consistency is key. Ensure all your income and expenses are accurately recorded so you can stay in control.
Make a plan
Debt can feel overwhelming, especially if it seems like it will take a long time to pay off. But with a clear plan, it becomes more manageable. Take some time to assess your financial situation and map out a repayment strategy that fits your budget.
If you can afford to pay more than the minimum each month, do so. This will help you clear your debt faster and reduce the amount of interest you’ll pay. Keep in mind that your circumstances may change, but having a plan gives you a roadmap to follow and helps you see that a debt-free future is possible.
Debt doesn't have to define or control your life. By staying informed, facing it head-on, and sticking to a realistic repayment plan, you can regain financial control and reduce the stress that debt often brings.
Ready to get started?
Take control of your debt by setting up a payment with Ophelos today. Log in to your online account using your 6-digit reference code and view your options.
