Life Issues In-Focus - Debt reduction

Do you want to shift the energetic patterns that hold debt-producing beliefs and habits in place?

Are you suffering from debts and are wondering how to reduce your debts?

Do you belong to those people, who by the end of the month look at their bank statement with frustration and annoyance noting that your entire income has disappeared? Do you drag the interest from the overdraft month by month?

If so, you are not alone. Debts are increasing, and debt reduction is an urgent demand.

There are many reasons why you may have run into debts.

Firstly, you may have bought a house, which gives you value for the credit you took.

Secondly, you may have got caught in a socially unexpected event such as a separation, accident, disease or unemployment to mention the major ones. You are suddenly confronted with a financial crisis and realise that you have not been able or taken care of savings. You need to take out a credit and end up in a situation where you find it hard to reduce the debts.

The third cause is the worst one, as it requires changing your beliefs and habits. These are the consumption debts where the money is gone and there is no value left on the other side.

Paying with plastic has become so convenient that you can get easily unconscious about the amount you are spending. Or do you know how much money you have in your pocket?

Most people end up in debts not because they have to cover existential needs but because they see something they want and buy it without questioning if they really need and can afford it.

Advertisement uses this human instinct and offers direct satisfaction in exchange for personal loans. Even if you are already in debts, these offers are seductive. Your beliefs support your instinct and suggest "Only this time!" Before you notice you have extended your credit card debts.

Effective debt reduction depends on changing your beliefs and habits.

1. Check out your beliefs that are responsible for creating debts.

Such beliefs are for example:

  • I deserve the best regardless of the consequences
  • 'Just this one time'
  • There's always someone who will help me out
  • Shopping changes my mood
  • When the going gets tough the tough ones go shopping
  • It's cleaner, purer, more virtuous or more spiritual to live on the edge of poverty

2. Reframe the beliefs that apply to you.

If you tend to go shopping to change your mood, sit down and check what else you could do to change your mood. Write this alternative in big letters on a piece of paper and place it where you see it or put it into your diary

3. Stay out of guilt feelings. Instead: take responsibility for your debts.

There is an important difference between guilt and responsibility. Guilt weakens you while responsibility strengthens you. You want to read more about it? Check out my book 'Growing through Joy'. (ebook version: Beyond suffering) You will find a whole chapter there on this issue

To take responsibility, ask yourself:

  • What's the gift of having debts? If you find this question difficult, ask instead: What's the disadvantage of not having debts?
  • What's the advantage if I get rid of my debts?
  • What's the price for it?

The gift can be to avoid the responsibility for the decision of how to use the money if you have it, to keep things as they are, etc. The price can be to give up comforts, beliefs or renouncing the immediate gratification of needs. Check out what applies to you

4. Keep your goals alive.

Do not minimise them. To reduce your debts, you need to increase your expectations instead of shrinking your needs to a minimum. Check your long-term goals and the steps to get you there.

5. Start to pay back.

If you have credit card debts, change them into normal credit. The fee is cheaper. And destroy all your credit cards except for one that you keep for emergencies.

6. Decide how many debts you can pay back each month.

Most experts on this issue recommend that you don't pay more than half of the money you can afford. Use the other half to start saving so you don't lose the motivation to earn money

7. Be honest with your debtors.

Offer a realistic plan.

8. Collect your outstanding fees.

Offer a payment plan if your debtors have the same problem as you

9. Decide upon a maximum of money that you will spend each month.

Keep a record of your expenditures. Do not go beyond. This is a question of self-discipline

10. Check your expenditures.

Ask yourself before you buy anything: Is this transaction really necessary? What is the motif behind? If it is an emotional need how else could I satisfy it?

If you think you need something and you can't afford it, don't buy it. Save for it.

We have inherited attitudes, thoughts and beliefs about money from our family, friends, media and culture at large. Examining and exploring your habits, thoughts and feelings about money is essential to reduce your debts and to create abundance in your life.

I offer a free course that will assist you in this exploration. Just click the link in the main menu

Dr Ulla Sebastian Personal Growth Resources
Stettiner Str. 3
59174 Kamen
Tel: +49 (0) 23 07 7 35 45
Fax: +49 (0) 2307 55 30 03

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