Are You Tired of Debt Review?
Dealing With Debt is Tiring
Getting into debt can happen so subtly that we hardly notice it, or it can arrive all in one go when we face challenging times. It seems one day you are fine, and then suddenly all you can think about is debt.
And then, the collections calls, sms, emails and letters begin. This makes debt even harder to deal with, as you are hounded for repayments nonstop. They are designed to motivate you to pay off your debt and are very effective in doing so.
Getting out of debt, however, can unfortunately take a long time and due to the extended time, it makes things extra difficult. We might start to feel tired along the way, due to delays and setbacks.
The simple truth is that dealing with debt is stressful. It’s mentally and emotionally draining, it’s relentless and it’s just tiring.
Perhaps it was when you were getting tired of being stuck in a debt spiral, and dealing with the collections process that you came across the idea of debt review, which finally gave you hope of sorting your situation out.
Debt Review & Dealing With Debt
Debt review is a great way to settle your debts. You get advice from a Debt Counsellor, you get a fresh start and with concessions from credit providers and help from the courts you are able to pay your debt off more manageably over a longer time period.
But that does not mean debt review is easy, Debt review is a lot like a long distance road trip.
At first, you’re energized by the promise of a solution and the relief that comes with a having clear plan to sort out your debt. But, much like on any road trip, as the kilometres drag on, your fellow passengers can start to irritate you and fatigue can set in.
Many consumers find themselves tempted to stop and give up, thinking it’s just not worth it anymore. But just like it’s dangerous to fall asleep at the wheel on a road trip, losing focus during debt review can lead to serious consequences.
Why Do We Get Tired on the Journey?
If you are fatigued after being in debt review after a while, please know that this is totally normal.
Just as you naturally feel tired after hours and hours of driving, sticking to a debt review plan over months or years can eventually wear you down.
One really big issue is often shrinking disposable income. Disposable income is the money we have to live on, after we have paid all our taxes.
Unfortunately, with the rising cost of essentials (like electricity and groceries) and most of us only getting small salary increases (if any), it can feel like your financial situation is getting tougher instead of easier. The constant strain of trying to make ends meet, can be exhausting.
Now this would, of course, be true even if we were not in debt review. But in our mind, we might start to connect the two.
Then there’s the natural desire to break away and “enjoy life”.
For many of us, we have been taught that we can only do this by spending money. It is natural that after some time, we may want to improve our lifestyle. Maybe you want to upgrade your car because it is starting to show wear and tear, replace your phone, or simply buy something new. We can start to resent the fact that we can’t have these things, while others can and we might blame being in debt review (rather than being in debt) for that.
These temptations, like wanting to take a detour on a long road trip, can pull you off course.
Beware of Shortcuts and Scammers
On any long journey, the idea of a shortcut is appealing.
Scammers know this, and while you are in debt review, they may reach out to you with fake offers that sound like a faster and easier way out.
They might promise to get you out of debt review, or get you more debt (a loan) or give you a way to pay less towards your debts. All of which can sound very interesting and tempting.
But just like taking a shortcut through a dodgy area on a road trip can lead you into dangerous territory, these promises are often traps. Falling for them can leave you in a worse position, with more debt and fewer options.
The Danger of Pulling Over Too Soon
Leaving debt review before reaching the finish line is like stopping halfway through a journey.
Except with debt review, you’ll find yourself right back where you started—or worse.
Leaving debt review before you have paid off all your debt, according to your court order, means your original credit agreements come back into play. That could mean higher interest rates, extra fees, and a sudden return to aggressive collections calls and letters. All the progress you’ve made could be undone.
Quitting early also puts up roadblocks to future credit, because of not getting to the point where the debt review is removed from your credit record. Lenders are very wary of offering credit to someone who didn’t complete debt review.
Stay Awake and Finish the Journey
The key to staying awake and on track, is focusing on the destination.
If you think about where you are going and the fun you will have when you get there, it can help you keep motivated when things start to get uncomfortable.
With debt review, each payment you make brings you closer to financial freedom. If you know how many payments you have left to make, and track your progress, it can be motivating.
It can also help to focus on all the benefits debt review gives you every day.
The Benefits
A Clear, Structured Plan
Unlike when you were stuck in debt with no way out, debt review provides a clear road map for becoming debt free. You know exactly how much you need to pay and when you will be debt free, which helps to eliminate uncertainty and gives you a sense of control over your finances.
Protection from Legal Action
One of the immediate benefits of being under debt review, is that creditors cannot easily take legal action against you while you are complying with the plan. If they do, you can easily fight back and win. This legal protection helps reduce stress and gives you peace of mind.
Better Money Management Habits
Being in debt review often requires better budgeting and financial discipline. It involves working as a household to get out of debt. The skills you develop during the debt review process can benefit you long after you’ve paid off your debts, helping you to avoid future financial pitfalls.
Lower Monthly Payments
For most people this is the biggest benefit. The debt review process restructures your debt so that your monthly repayments are more affordable, which can ease the burden on your finances. Instead of juggling high payments to multiple creditors, you have a consolidated, manageable plan.
Reduced Interest Rates
Another fantastic benefit is that, through negotiations, many creditors normally agree to lower interest rates and cut fees. This is an amazing benefit over time. And the longer you are in debt review the more you benefit. This means you pay less interest over time, and more of every payment goes directly toward settling the principal balance.
Avoiding Further Debt
What might later seem to some like a trap is actually a huge protection. Since debt review limits your ability to take on new credit, it prevents you from falling into the trap of running out and getting more debt, it can help you break the cycle of using credit to pay credit. We all know we are kind of addicted to debt and this stops us falling off the wagon.
Rebuilding Your Credit Score
Missing payments regularly can mess up your credit worthiness. Successfully completing debt review will eventually help you rebuild your credit score. While you may be flagged during your debt review, completing the process shows that you have responsibly paid off your debts, and over time, this will reflect positively in your credit profile.
Achieving Financial Freedom
The ultimate benefit is that you will be debt free at the end of the process. This is the destination we have been talking about. Achieving that freedom then allows you to manage your finances without the burden of creditors or the pressure of unmanageable payments. It is the ultimate fresh start, and enables you to now start working on building wealth instead of making credit providers rich.
An Expert By Your Side
Dealing with debt on your own can be hard. We sometimes look around for the adult in the room only to realise that it is us. It’s hard to know what to do and how to avoid mistakes. So, during debt review it is really great to have an expert at your side to point you in the right way. It’s like a good travel companion who helps you stay awake when your eyes get heavy.
Fight The Fatigue
So, if you are feeling tired, it is good to remember that it is the debt and the effects of the debt that you are tired of, not the solution.
Even if you were not in debt review, you would not be able to get more credit because with your debts, you would not qualify anyway. Even if you were not in debt review, the price of food and electricity and…well, everything would still be going up (unlike your salary).
Debt review is certainly not the problem, it provides so many benefits; from protection of your assets, to actual progress towards being debt free. Debt review is what is moving you forward to a financially secure future, one that you could perhaps only dream of while stuck in debt.
If you can track your progress and focus on these benefits, it will help you fight the feeling of being so very tired, and will keep you motivated to reach your destination.
