Weighed Down By Debts?

Burdened with too much debt?

Have you ever carried a load that’s too much for your strength? If you had, you would agree with me when I say that with too much load on your back or over your head, your knees will wobble, and as you take one step forward, every step becomes an unsure step, never knowing until when your knees with hold you up, or how long you can remain standing up.

Carrying the burden of debt from personal loan is the same. Every day that passes by means additional interest, which means that your debt is growing and growing … consistently.

When you find yourself in this situation, know that there is still hope; that something can still be worked out to improve the situation you are in. All you need is a good strategy and the will to do!

Some of you might wonder what strategy means. Strategy is defined as “the art and science of planning and marshaling resources for their most efficient and effective use.”

In layman’s term, it means planning how to pay off all your debts from your personal loans; making an inventory of all your available resources; and using all these wisely to pay off all your debts the soonest possible time.

One strategy that is very simple is to pay off everything by prioritizing payments through the process of elimination. This means you have to pay off first the ones that carry with it the highest interest.

So here’s the three-step strategy for debt management:


Step 1

Make a record of all your personal debts. Remember to write them down.  In your list identify the nature of debt, the commercial lender, how much the interest is, and the total amount you owe. Recall all your debts; never leave one unrecorded.

Include in your list the following: your personal loans and mortgages, your credit card debts, money you borrowed from your friends and relatives, and your old student loans from when you were in College. Again, always remember to include everything.

One very popular adage says: “what you can not measure, you can not manage”. Hence the necessity of writing all your debts down in an inventory.


Step 2

Identify and classify your debts into two categories: good debts and bad debts.

Good debts are those debts that are necessities, and there’s no other way to pay for them except through loans. Examples of good debts are mortgages, student loans, and car loans.

Bad debts are “revolving” debts. Examples are credit card debts and store debts.


Step 3

Make a final list of all your debts, arranged according to priorities; the topmost or number one (1) being the first debt to be paid off, and then so on and so forth.

Debt Management

This does not mean that the debts on the lower ranks do not get paid. It means that if it can be helped, focus most of your resources in paying off first the debt that carry with it the highest interest. Then move downward, slowly and surely, until you are able to pay off everything in time.

One advice at this point is for you to stop saving money first. Saving money in the bank will earn you very little interest, so little it’s incomparable to the amount you are paying for the interest and charges of your outstanding debt. Pay off all your debts first, and then when you’re finally free from debt, you can start saving again.


Look into your spending habits. If you have habits that caused all your financial troubles, such as impulsive buying, begin controlling them. Stop using your credit cards. Keep them somewhere where you will not be tempted to use them again. Leave them at home. Do not put them in your purse or wallet. Destroy them by cutting them in half, if necessary. Learn from your past mistakes. Do not commit the same mistakes again.

Lastly, this is the best advice of all;  live within your means.




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