Dealing with Debts: Why You Struggle to Pay What You Owe


Living with debts is stressful. Your money is already spent before you even earn it, and when what you make is not enough, you’re tempted to get new loans to pay old ones. The cycle is never-ending for those who’ve been going in this loop for a while.

The good news is that breaking free is far from impossible. Your situation isn’t as hopeless as you think if you look at it closely. You make specific decisions on a daily, monthly, and yearly basis that either compound or minimize the problem. Knowing those is the beginning of your journey towards a debt-free life.

Not Living Below Your Means

Many people hate the idea of living below their means because they associate it with the feeling of missing out. The trouble with this mindset is that it causes you to lose control of your money. This mentality applies to big and small things in your life.

Perhaps it’s been your dream to buy a house for a long time. By all means, pursue it. But make sure your options suit your financial capabilities, not just your aesthetic preferences. If your budget fits a certain house and land package in Arizona, then consider home loans that you won’t have trouble paying off monthly. Speak to a reputable company and be transparent about your goals so that they can give you the best options for your money.

Once you have this house, budget thoroughly. Skip out on your dream deck until you’ve paid off your mortgage or saved up enough funds for it. If you live in a dual-income household, live off one paycheck, and dedicate the other paycheck to your debts. Stop buying things you can’t afford simply because you fear that you’ll miss out.

Taking on New Loans

mortgage application

Do you feel pressured to take on new loans to pay off old ones? Most of the time, it’s just not worth it. Unless you’ll get a large sum with low interest and you can use it to pay off the rest of your debts in full, the chances are big that you’ll sink lower into the debt pool.

If you’re going to experience delays, communicate with your creditors. Try to renegotiate the terms and learn how to compute the daily interest. Ask if it’s possible to pay off your dues in smaller increments throughout the month. Evading your creditors is not a good idea because it will likely aggravate the situation and worsen your stress.

No Money Management Skills

At the end of the day, most of your financial problems boil down to your money management skills—or lack thereof. Even in your indebted state, you still don’t know exactly where every penny of your money goes. You don’t balance your checkbook, and you don’t have a detailed plan as to how you’ll handle each paycheck you receive.

Money management skills aren’t only about budgeting. It’s about developing financial literacy that gives you a fresh perspective about your situation. When you manage to pay all your debts, you have to maintain your debt-free status. So you see, it’s integral that you learn as much as you can about how to handle your money, or else you’ll soon find yourself stuck in debt again.

Be Patient

Even after knowing all these and coming up with a good strategy, paying your debts will take a while. It’ll involve a lot of discipline, and you may have to pass up a lot of vacations and social activities. Still, that’s a small price to pay. The only worthwhile thing you’ll miss out on by not managing your money is a debt-free life.

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