Debt discouragement is something that debtors should be aware of. This is a feeling of hopelessness that can sometimes be very crippling. It makes you want to give up on your current debt relief program and even prompt you to make drastic measures.
This feeling oftentimes plague those who choose to go through debt consolidation. This type of debt relief does not reduce the overall debt amount. Despite the lower monthly contribution, you will still be required to pay off everything that you owe – albeit in a more structured payment plan. The low monthly payment and the lack of debt reductions gives debtors the feeling that they are not making any progress in their debts at all.
Before you can quit debt consolidation, it is important that you try to battle your debt discouragement first. It may still be the best option for your unique financial situation. Try to save it to avoid wasting the time and effort that you already invested in this debt relief program.
First of all, look at the root cause of your discouragement. Is it caused by the seemingly slow progress? If so, you need to review the process of debt consolidation. The low monthly contributions will make it look like it is slow going. Try not to focus on how long you have left to pay off. Instead, concentrate on how much you have paid off so far.
Another thing that can do to battle that discouraging feeling is to go back to your financial goals and priorities. When you began this journey, you should have defined your goals. Remember why you chose debt consolidation among the other options. It will put your progress in perspective. For instance, if you chose this program because you wanted to put up your business as soon as you get out of debt, then you need to take care of your credit score. That is the only way you can get a good interest on your future business start up loan. Or it can be a home that you want to finance in the future. Hold on to these goals and you should find the motivation to override any discouragement that you are currently feeling.
It also helps to create milestones that will mark significant times in your debt relief efforts. Concentrate on these instead of the complete payment of your debt – which in debt consolidation is usually 5 years. Set up yearly or twice a year reasons to celebrate. This will help motivate you as short term goals can be achieved faster – thus giving you the satisfaction early on. You can set up as milestones percentage markers – like how much you have paid off already. Don’t make it too near nor too far. Space it well and make sure you allot a bit of your budget to celebrate.
It also helps to talk to a professional or a loved one for motivation. You can choose a debt counselor who will use their expertise to motivate you. Or your spouse can do the encouraging. Having a support system will help you out of any tight fix in your life.
If you happen to feel this discouragement anytime in your journey towards debt freedom, just concentrate on the positive. Keep your attention on what you have achieved and not what you had to lose in your lifestyle.