How To Get Debt Relief And Do Away With Money Stress Fast
This is an article “How To Get Debt Relief And Do Away With Stress Fast” by Marc Primo
Remember that Notorious B.I.G. song "Mo Money, Mo Problems"? Apparently, there's some truth to the line, "It's like the more money we come across, the more problems we see," according to one Harvard study. After all, money stress will always be there—with or without the green monster.
While more money can bring us satisfaction and comfort, our happiness levels can decline when we adjust our lifestyles that don't fit our means or prioritize cash over time. Aside from that, more money does not automatically reduce stress if we continue to bury ourselves in debt.
For sure, many online articles have already told you that the key to debt relief is frugality. Pay loans and buy less stuff that can be categorized as wants. However, things are changing in the financial industries and the economy in general. These days, you can achieve debt relief by handling things in a ‘do it yourself’ manner. Best practices that can set you free from creditors and secure your financial future may be a click away.
Here are some helpful tips that can get rid of your money stress fast, for the long term, and towards true life happiness:
The first step in dealing with debt is always making a few sacrifices. Listing down the things you can do away with, such as streaming subscriptions, expensive clothes, or that daily venti cup of Starbucks, can go a long way in your pursuit of debt relief. You probably pay most of these purchases via your credit card anyway, which will only increase the money you owe.
The number one ingredient in any D.I.Y. stress relief method is self-discipline. Expecting a bonus from work or some extra pay doesn't mean you can be complacent in buying more of your wants without considering how much you can pay off your existing loans. It might be challenging to practice delayed gratification, but changing your purchasing habits and sacrificing some conveniences can better pay off for the long term.
Try shifting your focus and attachment from the things you want to the things you need to get less of, such as money stress from debts. You can do this by acknowledging which spending habits are not productive and turning things around by either paying off loans or increasing your savings.
Remember that simple pleasures are easily replaceable. You can replace your daily Netflix binge with more outdoor exercise or your takeaway dinner for some healthier homemade cooking that costs less. Making these lifestyle adjustments will allow you to spread your budget to more things that can free you of debt faster.
If things get a bit challenging, allow yourself to take things in baby steps, then gradually make more significant changes as you go along. Making things more stressful because of your sacrifices only defeats the purpose. So, take things slowly and experiment with what substitutes make you happier while letting you save more money and stick with those.
Increase your spending I.Q.
Most people get buried in debt because they allow money matters to be their waterloo. You can try increasing your spending I.Q. by reviewing your options first instead of buying on impulse. The next time you see that designer bag you've been eyeing for months, try asking yourself the real questions. How will buying it improve the quality of your life? How will it affect your financial status? Do its benefits outweigh the risk of more money stress?
Most people with the power to swipe forget that having a good credit standing gives them more purchasing power. What it does give them, however, is more power to borrow money which is not a bad thing unless you spend that borrowed money on things you don't need.
We've all heard stories of former athletes or celebrities that blow millions of dollars on luxurious items and lifestyles, only to go bankrupt in the end. Avoid the pitfalls of debt by spending your money with high returns on long-term happiness such as retirement savings or real estate investments that increase in time and give you financial freedom later in life.
Know your rights as a borrower
Handling your debt relief process is possible nowadays, provided you familiarize yourself with your borrower's rights. Before taking out a new loan, review its details and the relevant provisions under the Truth And Lending Act.
Legitimate lenders usually provide a disclosure document that includes your pertinent loan details. This document should consist of the total amount borrowed and the corresponding interest rates, the annual percentage rate, external and additional charges, your payment schedule, and the total amount you'll have to pay over the loan contract's duration. The Federal Reserve Board calls this required issuance Regulation Z.
If you are on the fence about applying for home and mortgage refinancing, you should know that you have a 'right of rescission' that gives you three days to cancel the applied loan without being charged. Also under Regulation Z are mortgage rules for ability-to-repay terms introduced by the Consumer Financial Protection Bureau (CFPB). These terms require lenders to consider your current income, assets, employment, credit history, and monthly expenses when it comes to allowing you repayment terms provided they are within reasonable and good faith.
The CFPB also set rules on revised loan originator compensation rules and points and certain limits in imposing fees for approved mortgages.
Knowing your borrower's rights gives you the proper leverage to deal with lenders and negotiate ways to pay off your debt efficiently. Understanding the terms in any loan agreement keeps everything about paying off debt in check while keeping your credit score at safe levels.
Open yourself up to new experiences
Finally, when you have both your spending habits and loan terms perfectly balanced, do away with things you don't need via a garage sale or online. Use the profits to pursue activities that make you happier.
Part of relieving yourself from money stress is creating positive memories and preventing depression from peeking into your life because of debt. While you save or pay off debt from the money you earn, replacing old and stagnant stuff you don't use anymore for new experiences can be quite enriching.
You can cherish life experiences more in the long term than material things. If spending on such experiences might seem counterproductive, it's all part and parcel of relieving yourself from money stress. Positive experiences help you focus on things that matter and won't burn you out when dealing with debt.