Michael W Newman
How To Conquer Your Credit And Debt Problems
Whatever the reason, financial difficulties are an unusual and trying experience for most people. In denial, people may screen their telephone calls and ignore their mail. To some, the loss of financial stability can be almost as devastating as the loss of a loved one. People having financial difficulty experience many emotions related to their situation from embarrassment, and anger (toward themselves and others), to total disbelief coupled with apprehension and uncertainty about the future.
But it doesn't have to be that way. With the proper mental attitude and planning, YOU can overcome your financial difficulties and enjoy a debt‑free life. During my financial “blue period,” I clung to Dale Carnegie's famous soul searching question, “What's the worst that can happen to me in this situation?” When confronted with a money problem ask yourself that question. You may find that your answers alone may put you at ease.
When being confronted by a bill collector, ask yourself, “What's the worst thing this person can do to me?” Once again, your answers may be comforting in themselves.
MICHAEL'S GOLDEN SURVIVAL THOUGHTS
RULE #1: IT'S NOT AS BAD AS YOU THINK. DON'T LOSE SLEEP OVER IT; THINGS WILL LOOK BETTER IN THE MORNING.
RULE #2: YOU CAN GET EMOTIONAL ABOUT YOUR PREDICAMENT, BUT THEN YOU MUST GET OVER IT.
RULE #3: WHAT'S THE WORSE THING THEY CAN DO TO YOU?
RULE #4: CREDITORS DON'T DICTATE PAYMENT TERMS, YOU DO!
RULE #5: IF THE CREDITOR IS THE IRS, FORGET ABOUT RULE #4.
RULE #6: IF YOU CAN IMAGINE IT, IT CAN BE SO! FOLLOW YOUR VISION.
The psychology and mechanics of financial problem solving go hand
in hand. Your financial recovery plan must be coupled with a
healthy, positive mental attitude. To achieve this balance, you
should take the following steps.
RECOGNIZE AND ADMIT TO THE PROBLEM
The first step to financial recovery is to recognize that you are having a problem. Then, come to grips with it. This is where you have to overcome your state of denial. Many people know that they have a money problem, but, they won't acknowledge it. I have an associate who told me he was having financial trouble. His solution was to not open his mail. He'd say, “If I don't see the bill, I can't owe the money!” By not opening his mail, he was failing to admit to his problems. Recognition and admission go together. You cannot progress to the next step until you've accepted this.
ESTABLISHING A PROBLEM ACTION PLAN
Once you've progressed through recognition and admission, you are ready to develop your problem resolution plan. This plan can have many facets and variations, and should be designed for your needs and goals.
SETTING REALISTIC GOALS
To avoid disappointment, you should set goals that are realistically attainable. Don't rush yourself. Your problems weren't created overnight and they are not going to go away overnight. That's unless of course you hit the lottery and that comes with its own set of problems.
FOLLOWING YOUR ACTION PLAN
Once you've set up your financial recovery plan, follow it as best you can. Avoid temptation. Don't stray back to your old habits that got you into your predicament in the first place. If you are a family, get everyone involved. Keep your children informed of your progress. Share with them the positive results of their help and cooperation. Be proud of your progress and your resolve. Still, be prepared to adjust your goal and action plan as necessary in order to respond to changing situations.
MEETING YOUR GOALS
Like winning a race, there can be no greater experience than conquering your debt and solving your financial problems. During my entire ordeal, I dreamed of the morning I would awaken and say to my family, “We're free ‑‑ debt free!”
"He who bothers you holds your life in his hands.”
