We understand that you’ve bitten more than you can chew and now your loans are giving you a back, shoulder and headache. So here we are with a strategy to beat it.
How you deal with problems has as much to do with your emotions as it has to do with your mindset towards it. Problems are inevitable. No matter how careful you are, they will pay you unwelcomed visits now and then. The trick is not in keeping troubles away, it’s in dealing with them upfront.
So, what do people do when they find themselves in a pickle? You must have observed among your friends and family, the different ways in which people react to trouble. Most wallow in it, some don’t deal with it and a smart few take a deep breath, narrow their eyes and focus all their energies on looking for a solution. Who among the three do you think is a master problem-solver? Of course, the one who takes a deep breath, looking for a solution.
If they can, so can you. We understand that you have bitten more than you can chew and now your loans are giving you a back, shoulder and headache. So here is a strategy to beat it.
Additional Reading: What Is EMI And How Is It Computed?
It’s fine to feel miserable
Feel bad, miserable and stupid for taking too big a loan. It’s okay to wallow (a little bit). People will say many harsh thing to you, but don’t let it crush your soul. You must put up a brave front but let it all out before that. Find yourself a quiet corner and reflect on your problems. If you have a realisation of our mistake, then it’s a good thing. Psychologists say, feeling repentant means that you have silenced your ‘I can never be wrong’ ego and are ready to make amends. Feeling low is a cathartic experience where you are draining out the emotional excess. Once you are done, wipe your eyes and get ready to deal the problem a punch in the face. Just remember that wallowing for too long is not good either.
Ditch the blame game
Once you have vented out all your feelings, take responsibility for your actions. Don’t blame the loan agent or the bank for not telling you about a certain charge or free. You took the loan because you wanted one. It was your responsibility to do the research work before signing on the dotted line. It was also your responsibility to determine how much or how many loans you can service. Of course, unfortunate circumstances like loss of job and sickness can play with your well laid, loan-repayment plans, but then you should have had an emergency corpus ready for such a setback. Well, these talks are in the past now. Take responsibility for your mistake. Once you do this, you’ll be able to find a solution faster. Blaming others tricks your mind into thinking that you are not responsible for the muck you are in. This is not what we want, right? We want your mind to help you navigate the problem and find a solution.
Quick tip: start saving to pay down your loan faster.
Look after yourself
Why do we say burdened under debt? Because that’s exactly how you feel emotionally and physically when loans spiral out of control. Ever noticed that when you are in trouble, your walks become sluggish as if you are walking with truckloads of baggage on your shoulder? Worrying excessively about your problem can harm your physical and mental health. Hence, when life gets you down, you must ensure that you eat and sleep well. This is the time when you most need the company of your health. Falling sick will only make the journey of finding a solution harder. Don’t punish yourself to the point that you snap. Only a healthy and happy person can survive the ordeals life throws at us from time to time. So be merry. All things bright and beautiful will return to you soon.
Don’t stop
Finding a solution is not easy. Often, the trouble lies not in looking for a solution but knowing which solution will work best. If you are unable to repay your loan(s), there are many measures you can adapt to soften the blow. But what works for one, might not work for the other. The trick is in knowing what works for you. You might face challenges such as friends and family refusing to help or the bank unwilling to restructure your loan, but don’t feel dejected. Keep knocking on all possible doors of help. One of them will surely open up to you. Click here to find out what to do when unable to pay your loan.
TIP: A good way to stem expenses to save for your loans is to downgrade your Credit Card. Get one with a low upper limit.
Learn from your mistakes
The last step in the problem-solving process is learning from your mistakes. Guess what, people once scarred financially automatically become smart money managers. You know, once bitten twice shy. The next time you take a loan or get a Credit Card, think back to this experience. Start keeping a budget. Pay attention to how much you earn and what you can afford. Creating a budget is half the problem solved. The other half is dealt with when you stick to your budget.
Also, show your money some love. Your money likes to be invested. Explore Mutual Funds, Fixed Deposits and many others investment options. Again, don’t be hasty. Explore all your options lest you lose your money to some shady scheme.
A sour experience has perhaps taught you the importance of savings. So the next time salary is deposited in your account, first, stake out your savings and then spend what remains.
Additional Reading: When A Borrower Fails To Repay The Loan!
So, are you feeling better now? We hope so. A happy you will be able to surpass the biggest of challenges when compared to a sulking you. As for savings and investments, Mutual Funds are the hot thing. Check them out.