How to Break the Shame and Debt Cycle
Job losses this year is estimated between 400,000 – 1.5 million
since the Coronavirus crisis effectively forced the shutdown of large parts
of our economy. Treasury also said that around 3 million jobs are at
risk even if the pandemic is contained quickly.
With many breadwinners losing a portion of their income or their jobs
entirely, more people will be in a worse off situation than they were
before. And the truth is that consumer credit health conditions were
deteriorating before the impact of the COVID-19 lockdown were imposed by the
government on March 26.
My concern is for those of you who have always had a high steady income,
have taken on a lot of debt and who have never needed to watch your
expenditure because you have always had your next pay to look forward to.
You are likely to get a sharp wake up call if you don’t pay attention right
now and your work is also uncertain.
If debt payments are eating too much of your earnings — or if you’re missing
payments, borrowing from one card to pay another or being sued over your
debt — you probably need help.
So, if you find yourself in a spot that you can't manage on your own, what
can you do to turn your financial problems around for the better? First
combat shame, be vulnerable, forgive yourself, and develop a debt strategy.
These steps will make a big difference, not only to your outcomes but also
to your outlook.
Face your problems. The heaviest burden of spiraling debt is
often that we think we have to bear the weight alone. That's not
true. Talk about your financial problems with trusted family
members and friends. It’s also important to tell them not only about the
debt, but most importantly, how you’re feeling about it. Feel
embarrassed? Say so. Feel like a failure, tell them. Don't let
your pride get in the way of your opening up.
Forgive yourself. In almost every case, the debt was created for
reasons that felt right and necessary to you at the time. Instead of
blaming yourself, be honest about what your intentions were, the
underlying emotions that were influencing those reasons and what you were
trying to achieve with your purchases. Then let it go.
Gather information and advice. Solid information shines a
bright light on problems and takes away fear. This also applies to
communication and conflict situations in the family.
Keep a positive attitude. You can't control some of the events
that happen to you, but you can control how you react to them. Acceptance
of losses, setbacks and disappointments helps us deal with life's problems
and injustices. Worry about the things you can do something about.
Look for small bits of happiness. If you look for the silver
lining, the cloud doesn't look as dark. Someday when you tell the story of
your life, some of your most defining moments, moments that changed you
into a better human being, will have happened during times of trial and
struggle. Be patient with life.
Develop a debt repayment plan. Watch your spending, both business
and family living expenses. Be flexible. Adjust expectations and learn
to live on what you earn rather than what you're used to; use cash,
not credit. Adjust your budget and your lifestyle to fit the reduced income
and increased expenses. Make whatever changes need to be made. Don't delve
into escapist activities that hide you from problems.
0 comments