Losing Sleep Over Debt? Here Are 4 Simple Solutions

Each of us handles debt in their own unique way.

Some of us, for example, brush off the debt and refuse to worry about it.

It’s in the back of our mind, for sure, but we don’t let it influence our everyday life.

Then there are those of us who worry about debt.

We worry about how much debt we’ve got, how much interest we’re accruing and how we’ll ever become debt-free. Maybe, worst case scenario, we worry about how we’ll even make that next payment that is due any day now.

If you’re losing sleep over your debt then take heed; your worrying could actually be a good sign…

The fact is that if you’re the kind of person who never worries about debt, you’re also probably the type of person you never does anything about it.

The worriers among us (and I class myself in this group) are more likely to take action to do something.

That worry, that lack of sleep, can be like a thorn in your side, willing you to take action and resolve the issue.

If you’ve lost sleep recently, lying awake at night worrying about debt, what should you be doing to help rid yourself of worry and return to a proper night’s sleep?

Face Your Demons

The first, and most important step, is to face head-on whatever it is that is worrying you. In many cases it’s not the concept of having debt that leads people to lie awake at night. Instead it’s some other element of the debt. Examples of what might be setting you off can include:

• Worrying over how much debt you owe (without knowing the actual sum)
• Letters or phone calls chasing unpaid debts
• Concerns over finding the money to make your next debt payment
• Concerns over trying to hide or explain the debt from a partner or family member
• A growing sense that you’re losing control of your finances

The important thing is to try and assess exactly what it is that is keeping you awake at night. Put some time aside where you won’t be interrupted and just sit and think. Mull over your situation and how you feel about it, so that you can figure out the specific causes of your anxiety.

Once you’re pretty sure that you’ve got a handle on the source of your sleepless nights, the next step is to face them head-on.

However painful or embarrassing or unpleasant this may be, the only real way to rest easy is to resolve whatever it is you’re truly worried about.

So open those bills that have been lying there unopened. Ring your creditors to discuss repayment options (or lack thereof). Respond to those threatening letters. Accept those unpleasant phone calls.

I know it’ll be painful; I’ve been there myself. In the distant past it could take me hours to build up the courage to open a bill I knew I couldn’t pay or admit to a creditor I couldn’t pay them.

However what I learned over a few years is that the reality of the situation is rarely as bad as I thought it was.

I regularly had visions of having to sell absolutely everything I own or to claim bankruptcy. I worried repeatedly about bailiffs coming round to demand money. But it never got to that. Things were never as bad as I expected, but the only way to discover this is to face your demons. No matter how long it takes or how much it scares you just do it.

Create A Plan

Once you’ve faced your worst fears, by now you should have a fair, balanced and rounded impression of where you stand financially. You know how much you owe, you’ve put out any fires that have cropped up and you can now start to make a plan.

So do your budget. Work out how you can save money. As a result, figure out how much you can afford in debt repayments.

Then commit to it. As soon as you do this, you can start to breathe easier. As soon as you make a real plan and commit to it you start moving in the right direction. Every day that goes by from that point on takes you closer to your goal, not further away.

Automate Your Repayments

Debt can be a scary subject; I get that. Once you’ve faced the worst that your creditors have to throw at you, you hardly want to go through this process each and every month. As a result, I would suggest you try to automate your repayments as much as possible.

Trying to remember to send off checks each month, or transfer money from your bank account, is just too easy to forget. And when you’re heavily in debt, a single late payment (or worse – missed payment) can cause a whole knock-on effect of problems that can quickly spiral out of control.

Instead, arrange for payments to go out automatically every time you get paid. That way you’ll not only be able to sleep easy knowing that your payments go out no matter what, but it also makes budgeting far easier when you know the payments go out when your bank account is at its healthiest.

Monitor Your Progress

The final step to not losing sleep over your debt is simply to monitor your progress as time runs on. Each time you get paid, just log into your bank account and satisfy yourself the payments have gone. Make a note of the overall balances you owe and watch them dropping over time.

Each time another payment goes through – and your overall debt drops again – you can rest a little easier. Every new payment takes you ever closer to a debt-free world.

Relax – you’re on the right track.

Have you ever lost sleep over your finances? How did you manage to get through the situation? Please leave your experiences in the comments section below…