The Business of Debt Stress

The Business of Debt Stress: How do you deal with debt and the stress it creates?

No one likes to owe someone else. It's even worse if that someone else turns into a collection agency. It's hard not to take things personally and get emotionally involved.   Here's the hardest lesson you'll ever need to learn: it's not personal; it's just business.

what does debt look like?

Being in debt is stressful and it's not made any easier by some of these companies who are very good at making these issues personal and, unfortunately, often unpleasant. Remember, they are paid to collect and will do so in almost any way possible.

how to manage the stress of debt?

To effectively manage the stress of overwhelming debt, follow these recommendations:
The first step to dealing with whatever is stressing you out is to make a plan. Sit down and write it all down. The American Journal of Health Promotion (1992) talks about the therapeutic value of writing down your anxieties. Too often we don't have a legitimate understanding of the real situation. We tend to do what is called catastrophizing, expanding through our worries everything we experience.

Writing everything down makes it real, but it also gives you some emotional distance.   What's more interesting is that you'll often find that putting things down on paper in this way will give you a sudden sense of peace. On paper, things rarely look as bad as they do in our minds.
Start by not avoiding your debt. Avoidance rarely solves problems, but can actually make the situation worse. Often, especially in this economy, creditors will work to help you, the customer, especially if you have been a good customer with a record of timely repayments.
Bite the bullet and call your creditors. Sit down with some note paper and a pen and take notes on everyone you talk to and what was discussed. Be sure to write down the time and day and what was finally decided.

An associate of mine had a similar experience with a mortgage payment that was delinquent. Stressed for a couple months about how to get caught up again, she took the plunge and called. The company was very generous (ten years of timely payments will do this). They graced one, adding it to the end of the loan and split the remaining overdue payment, spreading it out over four months. Problem solved, simply by asking what could be done.
Many will offer other suggestions that will help reduce the amount you owe. For instance, an offer to ask for, in case they don't make it, is to ask for a reduction in late fees. These are "paper" debts, as it was, and some are more than happy to waive this if it increases their chances of being paid.

Then, set some parameters yourself. Dealing with debt stress is like any other job. What stresses you out? Phone calls from collectors? Make a commitment to yourself that once you take one call a day, you will stop taking phone calls, say, after five o'clock at night. You have rights, although that's a topic for a later article, but suffice it to say that you are in charge of this one.
Taking charge will help reduce the stress you feel about having to manage your debts.