Overwhelmed by Debt? Ease Into a Plan With These Expert Tips

When debt feels overwhelming, it can be hard to imagine that any generic one-size-fits-all advice can lead to financial freedom. Financial therapist Suggest that the relationship with money is emotional and behavioral, but becoming debt-free is not out of reach if you work your way through it.

A good starting point is to acknowledge and normalize your feelings around debt, according to a certified marriage, family and financial therapist at the University of Georgia who serves as assistant director of the Love and Money Center at the University of Georgia, which offers clinical training, client services and outreach programs. A key is to recognize that debt is temporary and not absolute or final.

This temporary state can be reduced with one small active action followed by another. Whether it is checking Card balancedownloading a tracking app, or reading debt success stories, the bottom line is getting started and taking care.

Here are strategies to keep your debt payment journey on track.

Consider things that have helped you cope with stressful situations in the past. Hargrove says it could be a cup of hot chocolate or a cup of tea, or a reward for waiting at the end. A simple ritual will erase debt, but it can make difficult financial tasks more manageable.

Hargrove suggests enlisting a “body double” — a friend who joins you in person by phone, video or in person while you work through a task. A zodiac friend can also offer encouragement and practical advice along the way.

Decide how much time to devote to your goals. Even five minutes a day can contribute to growth.

Break tasks down into manageable steps:

Get motivated with debt tracking based on your preferred method, whether it’s spreadsheets, bullet journals, downloadable printables you can color in at each milestone, or something else. also, Track your budget With an app, spreadsheet or other option that will keep you informed of every expense.

“The more you engage with it, the more motivated you are to stick with it,” says Sami Mandelbaum, CEO and founder of Prosper Financial Wellness, a financial therapy and coaching service.

Pull your credit report for free at AnnualCreditReport.com or log into your accounts to get a list of your debts, minimum payments and/or interest rates.

“It can be comforting to feel, ‘OK, in the closet (no one else), right?'” says Hargrove. “Now we’ve turned on all the lights.”

Review spending, debit and credit card statements to understand spending and trim where needed, or switch to less expensive alternatives. Redirect any savings into one Contingency fund and debt repayment.

Set a repayment deadline based on a realistic monthly amount you can pay toward the balance.

Also consider these steps to save time and money:

• Lower your interest rate: Depending on your credit score or circumstances, you may qualify for methods Low interest loans With a balance transfer credit card, credit card hardship plan, debt management plan at a nonprofit credit counseling agency, consolidation loan or another option.

• Choose the avalanche or snowball method: If you have multiple debts, decide to target the smallest balance first (Snowball) for a quick win, or the highest interest loan (Avalanches) for maximum savings. Continue to make minimum payments on all other debts to protect your credit.

• Stop using credit: If you must, temporarily switch to a cash or debit card.

If money is tight, try to supplement your income with enjoyable work, or consider a lifestyle change such as moving, roommates, or downsizing.

Avoid cycling through debt Building an emergency fund While you pay off the current balance for unexpected expenses. Initially, it may be easier to do with the snowball method.

“Don’t feel like you have to do one thing or the other,” says Nathan Astle, a certified financial therapist at PreFinance, a debt consolidation company. Even if you have a small balance, “just getting that off your plate will feel like a start,” he says.

An emergency fund can also start small. Even just a few hundred dollars worth of safety netting can help. Finally, shoot for three to six months worth of expenses.

You don’t have to wait until you’ve paid off the loan in full to indulge or treat yourself. Reward small milestones with a price that won’t break the bank. It could be quality time with family, self-care or something else.

“Smaller extra rewards are usually better for us than one big thing after it’s all figured out,” Estelle says.

Expect bumps along the way as you build new habits and navigate unexpected changes or situations.

“What you’re really changing is behavior,” says Hargrove. “The more you apply the intention and correct as you go, then it starts to become a habit.”

Mendelbaum suggests writing down a list of challenges you’ve overcome as a reminder of what you can do again.

“When I have a setback, I go through the list, and then I look and say, ‘Yes, something like this happened to me and, look, it paid off,'” she says.

Imagine yourself in the short-term future feeling grateful for the decisions made now. Hargrove suggests talking out loud to yourself when you’re choosing to support your goals. Say something like, “Future (insert your name), I’m not going to splurge on food (or a different expense) today, I’m living on a budget for you.”

When you review your progress later, say something like, “Dear (insert your name), you really looked the part this month, it was amazing, and I really appreciate it.”

According to Hargrove, it may sound silly, but self-talk can help change behavior and inch you closer to your goals.