Overcome Debt Stress: 4 Ways to Take Financial Control

When a debt gets out of hand, it can be a major source of stress in your life. It can feel like you’re always carrying the weight of the world and that there’s no way out. However, there are ways to overcome debt stress and take back control of your finances.

Couple in Las Vegas experiencing debt stress

Clark County Credit Union shares four ways to overcome debt stress:

1. Address your debts

When faced with financial stress like overwhelming debts, many Americans tend to avoid addressing their debts. While this may feel like a way to escape, it’s only prolonging your financial burden.

Instead, face your debt head-on and get clear about what you owe. This is also a time to reflect on why your debts accumulated and make changes in your spending habits. You can start by asking yourself questions such as:

  • What are my debts?
  • Which debts should I eliminate first?
  • What’s my plan?

By asking yourself these questions, tackling your debts can feel more manageable. Learn more in this article, Three Questions to Ask Yourself to Get Out of Debt.

2. List out your debts

Start by writing down all your debts along with their balance, interest rate, minimum amount due each month, and payment due date. The next step is putting them in order, this will make it easier to create a repayment plan. Financial experts recommend following one of many debt strategies to manage debt payments. For example, when you apply the Debt Snowball Method, you pay as much as you can towards your smallest debt and make minimum payments on all your other debts. Once that one is paid off, move on to the next smallest debt, and so on.

3. Create a budget

Once you’ve determined your debts and your plan to tackle them, it’s time to evaluate your income and ensure you’re able to fit them into your current monthly budget. This will also help you understand exactly where your money is going and where you can make cuts. Look for areas where you can reduce spending and redirect that money toward paying off your debt.

Use CCCU’s free financial tools to help you make an action plan.

4. Consider talking to your financial institution

Another option is to talk to your financial institution - they may offer debt consolidation or a balance transfer for better interest rates. Remember, consolidating your debts does not completely wipe out your debts; it’s a tool to streamline your payments and potentially get a more favorable term.

Finally, don’t forget to take care of yourself during this process. Debt stress can take a toll on your mental and physical health, so consider self-care activities such as exercising, meditating, or other low-cost activities that bring you joy.

Overcoming debt stress is possible with patience, determination, and a solid plan. Whether you’re looking to consolidate or transfer your debt, CCCU is here to help. Visit www.CCCULV.org or speak to one of our financial representatives at 702-228-2228 for assistance.