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How To Reduce The Stress and Worry Caused By Debt

Being in debt can hold a weight over you, causing stress and worry that can often feel unmanageable. We understand just how difficult and overwhelming these feelings can be, but the most important thing to remember is that there is absolutely a route out of financial difficulty, you are not alone, and you can reach financial freedom again one day.

In this article, we’re going to be talking a bit about stress and worry caused by debt, as well as how you can navigate it. Taking the first steps to look after yourself and move towards confronting your debt might be scary, but it is absolutely worth it.

Where To Begin With Stress and Debt

If you’re in a position where stress about debt feels really overwhelming, the best place to start is by being realistic about the situation you’re in. This will be scary; however, allowing debt to build and build without addressing the issue will only make things worse. So, facing your debt head-on is the main way that you can begin to reduce your stress. Try not to make this into a chore, but more of a positive experience where you are taking the right steps to move toward the future you want because that’s how other people see it.

When you have some time spare, sit down and go through your different accounts to see realistically how much debt you’re in. From any credit card debt to catalog debt, dental work, or medical bills, make sure you note everything down. You should also note down the different interest rates to know which debts will be building quickly.

Now that you have written everything down, it might be a lot to take in, but it’s a fantastic step to have taken as you are removing the element of unknowing from the situation. Then it’s time to start tackling it head-on. Remember to be kind to yourself throughout this whole process, as everyone goes through financial difficulties and you shouldn’t be harsh or punish yourself for the situation you’re in. You’re not on your own, and even reading this article is a fantastic step and shows you want to move in the right direction, and you will get there.

How To Manage Your Debt

Now that you know exactly how much you need to pay back, we’re going to talk through some different directions you can go in to start paying it off with some gusto and move closer to the stress-free financial future you are wanting.

You need to look at all of your debts and their interest rates and identify where the priorities are in terms of what you need to pay off. Talking to your bank or a financial advisor about this is always a good idea, as they may be able to provide professional advice.

Next, write down all your essential monthly spending, leaving off things like going out, holidays, and savings for now. Then, figure out realistically how much you can afford to pay off each month. This will help you decide on the best next step to manage your debt.

Different Debt Options

There are so many different options to help you overcome your issues with debt and reduce your stress as a result. We’re going to briefly run through them to show you what you could access depending on your debt, and then you can make another great step towards taking action.

Normal Repayments

If you add up all of your debt and look at interest rates, then identify in your budgeting step that you have enough money to pay it off yourself in a reasonable time, then that is the best option you can take. Identify your more aggressive debts in terms of interest rates and pay more towards them, along with paying off smaller chunks of your other debt. Looking at your interest rates is really important, as you want to make sure you are paying off the actual debt rather than the interest that is accrued each month. Be strict with your repayments and set up direct debits on payday, so you have no option but to make the payments.

Debt Consolidation

For those of you who are finding debt across different cards overwhelming, debt consolidation could be a good option. You can bring debt from all different accounts into one place, reducing the number of payments you need to worry about. For some people, the most overwhelming part of their debt that causes stress is that it is scattered all over the place, so this would be the perfect solution. Make one simple payment each month, which is then administered to your creditors on your behalf. You also only have one interest rate, so you will accrue less interest each month, so the overall repayment will be less.


An IVA is very similar to debt consolidation in that all of your debts can be brought into one place, yet with an IVA, you can write off up to 90% of your debt. They are designed for people struggling to repay their debts and who can’t afford to make the necessary repayments to become debt-free in a reasonable space. You will work with an IVA advisor, who is a legal professional, who will act on your behalf and negotiate with your creditors to reduce the amount of debt you owe.

You can significantly reduce your monthly repayments by doing this. IVAs are usually over a period of up to 5 years, depending on how much debt you owe, and they will be recorded on a public register for 6 years. This register isn’t anything to worry about, but you may struggle to get any kind of credit during that time, such as personal loans, a mortgage, etc. If repaying your debt really isn’t manageable, then seeking IVA advice can be a fantastic option that can transform your financial situation and significantly reduce the stress you are feeling as a result of debt.


Last but not least, we have bankruptcy. This is another, more severe, option for people who can’t repay their debts at all. When you are feeling at a complete loss on how you can repay your debt, then bankruptcy could be the right path for you, as the majority of your debt is wiped away (there are some exceptions where debt can’t be wiped off, but these will be highlighted by an advisor before you make a decision). You will need to sell the majority of your large assets (properties, cars, etc.) in order to pay off some of your creditors, however, once you have sold your assets, they won’t be able to contact you for any more money. This is a significant decision to make that shouldn’t be taken lightly, but for some people, it’s absolutely the right one.

Final Thoughts

Financial stress can be a really difficult one to deal with, but as difficult as it may seem, the best thing you can do is tackle your debt head-on and move into a more secure position where you know exactly what you are repaying, and when. This will be such a relief when you take that first big step to assess your debt and decide on a repayment path. Stress in any form is temporary, yet there are things you can do to ease it and move yourself towards a happier life.

Disclaimer: The information in this article is provided for general education and informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness or fitness for any particular purpose. It is not intended to be and does not constitute financial, legal, tax or any other advice specific to you the user or anyone else. TurtleVerse does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.



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