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What You Can Do Right Now to Relieve Debt Stress

How can I reduce debt stress with simple action steps?

What You Can Do Right Now to Relieve Debt  Stress

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The key to solving debt problems is to take the simple action steps outlined in this article. It's not rocket science, it almost seems too simple. So, what's the plan?
In just 10 minutes time you can have a sense of relief and empowerment by taking the first two steps away from debt and towards wealth.
Taking positive action to address a problem is a big part of the solution. This positive action is the only way to experience the power of the secret key to wealth creation. 
The key is found in step three and four. But you must do step one and two to get there!

Step one: Know your exact debt position

Write a list of all your debts, credit cards, personal loans, car loans, store cards etc. 
Why is this important? 
Debt Stressed?
Image for Debt Stressed?If you're struggling to pay your debts and covering living expenses, we're here to help. Through our national panel of Debt Management specialists, we can help customers with $10k or more in debt by consolidating your existing loans, stopping Debt collectors from contacting you and re-negotiating repayments on your terms!
This allows you to see the facts and stops the emotional roller coaster of fears and anxiety of the unknown. We actually feel better when we see the problem.   
An example of a good debt list. Simple clear and easy to see the facts. 
Write the following headings across the page and fill in the details under the headings.
  • Bank/Lender
  • Bank limit
  • Balance
  • Interest rate.
  • Monthly payment
You will need two balances to be able to complete the steps.  The other information is so that you have a clear picture on your present situation.  You now have very valuable information in two of the columns.
  • The total  outstanding balance on all loans. 
  • Total monthly loan repayment.

Step two: Get a quote for a consolidation loan through a Mortgage Broker. (Not the bank) 

Why is it important to use a Mortgage Broker?  
This eliminates dealing with your problems in a hostile environment. The Bank Office.
A broker can give you the options and take the steps towards fixing the problem. This is a great confidence builder. 
Tip, if you go to the bank they will sell you what they want you to have, not necessarily what's good for you.  A Mortgage Broker will ascertain if you need a personal loan or a refinance of your mortgage. 
The principle is the same with either your mortgage or a secured or unsecured personal loan. The Mortgage Broker will provide a complete summary of the proposed loan.
  • Amount to be borrowed.
  •  Name of lender
  • All loan fees, 
  • Loan interest rate.            
  • Loan monthly payments.     
  • Term of the loan.
  • Restrictions or costs on early repayment, extra monthly payments.

Step three: Do this confidence builder, gain control of the future

So few people do this next step and never get near to the key and so waste the opportunity to create real wealth. 
You may not see why you should do this but in six months you will  look back and see it as a major turning point in your life.  
Calculate the consolidated loan surplus.   
This is the difference between your old monthly loan repayments and the new monthly loan repayment, on the outstanding balance . 
Lets assume that your debt consolidated surplus is $190.   Now you can make a quality decision based on the facts.  

Step four: Take control, tell the broker and the lender what you are going to do.

This step is vitally important and will change the way you see debt, wealth creation and your future forever. 
This is the key. Insist  the $190 surplus is added to the normal monthly repayment that you would have been quoted by the broker. If they resist, ensure you deposit the $190 into the loan on the same day as the loan repayment. 
They may want to charge you a transaction fee for this.  
A no fee mortgage or personal loan is so important .  The banks want to take savings on your loan through fees, denying you the full power of the secret key.  

Step five: Be part of the few who are creating wealth every month in their lives by eliminating debt

By adding your consolidated surplus to the quoted monthly fee will have an  amazing impact on the time it will take to pay your original debt on the credit cards and personal loans. 
Your broker will take you through the actual amounts but with the consolidated surplus added you will pay it off in half the time and if you add another $200 it will take half the time again. 
The amount of time you spend with a broker will greatly motivate you to move forward in the process of wealth creation.
A good exercise to keep you focused is to say to yourself repeatedly, " every dollar  I put into the  loan over and above the minimum repayment is a dollar in wealth I have created". 
This is the Secret Key of Wealth Creation. So take action now; contact a Mortgage Broker for help in the process.

Published: Sunday, 1st Aug 2021
Author: 150


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