A support system is one of the important things that you should set up if you want your debt consolidation strategy to succeed. It does not matter what strategy you will choose to achieve debt freedom. You have to set up a support system to ensure that you will reach all your financial goals.
When you are in debt, that is an indication that you did something wrong with your finances. Having debt does not just mean you were reckless with how you managed your money. If you failed to save up for an emergency fund, that can also force you into debt. In one way or another, your debt is a result of a bad decision that you made.
This is the reason why having a support system is important. Obviously, your judgment is flawed if you landed yourself in a debt mess. While there is always room for improvement, having someone there to stand with you as you free yourself from the clutches of debt is always a welcome relief. They can really make a huge difference as you try to complete your debt consolidation strategy.
We all need debt consolidation help but that does not mean it should be from a professional. It can be the people around. It does not even have to be a group. You can choose just one person to serve as your support system. This person does not even have to know that they are playing that role in your life. As long as you know that you can air out your frustrations on them with hearing any complaint, you can rely on them to get you through very challenging financial times.
Why your debt consolidation strategy needs a support system
Basically, you need a support system because getting out of debt can be quite frustrating – especially if you are using a debt consolidation strategy. According to various studies, having a network of social support brings a lot of positive benefits. This includes improving the ability to cope with stress, helping with good mental health and self-esteem, and even encouraging people to stick to a plan that will improve their situation.
As you can see, your support system can prove to be an asset in making your debt consolidation strategy a success. There are two important reasons why this can be very useful specifically during debt consolidation.
There is not much debt reduction
First of all, you will not get a lot of debt reduction. You will still end up paying for everything that you owe. If there is a reduction in payments, it will only be caused by a lower interest rate. Or maybe if you try to negotiate the fees and charges. But all of these are not guaranteed and will be under the discretion of the creditor or lender. The bottom line is, the reduction will not be on your actual debt. This can make some people feel overwhelmed and frustrated about the whole debt relief process.
It might take longer to complete
Another quality of debt consolidation is that it will take you a lot longer to completely pay it off. Since there is no debt reduction, paying it all off will take some time. If your debt consolidation strategy is set up in such a way that will give you lower monthly payments, that means it will take even longer to be free from debt.
Both of these reasons can lead you to feel very frustrated, overwhelmed, and stressed out. It will not be long before you feel discouraged about your debt situation. When that happens, it will be harder to complete your debt consolidation strategy. One setback and you might find yourself giving up or borrowing more money. This is why you need someone to help pull you back and calm your frustrations.
Where to find your support system during debt consolidation
The thing is, choosing who you will assign as your support system during debt relief is not that easy. Sometimes, you are surrounded by people but when you think about it, you do not have anyone to really talk to about debt. Admittedly, it can be an embarrassing subject. In fact, even couples do not talk about money. In one research, it is revealed that 4 out of 10 Americans have no idea how much their spouse is earning. If you cannot even ask your spouse how much they are earning, how can you talk to them about your debt situation?
Obviously, you need to get over with your aversion to talking about money. If you are making bad financial decisions, it is best to have someone else input their opinion about it. Of all the people around you, here are some of your options for your support system. Anyone of these people can help you complete your debt consolidation strategy.
Your special someone
Your partner or your spouse should be your first pick when it comes to your overall support system. At the very least, you owe it to them, to be honest about your debt situation. If they really love you, they should be understanding of your predicament. They should be more than willing to assist you as you try to improve your financial position. After all, your financial success will also be their own.
In case you do not have a special someone yet, you can turn to your family for help. The truth is, there are financial situations that can be beneficial to you and your family. There is nothing like a problem that you can work on together to bring you closer. Then again, you do not have to announce to the whole family that you have a debt problem. You can choose one member who you are closest to. It can be your parents or your siblings. You can even choose your favorite cousin. It should be someone who understands you and you respect enough to listen to them when they are trying to get you to do the right thing.
Your friends can also be a good source of a support system as you try to complete your debt consolidation strategy. Maybe you have friends who are going through the same financial situation as you. It might make things easier if you and a close friend go through your respective debt relief programs at the same time. You can share experiences and stay together as you try to save as much money as you can to increase your debt payments.
A debt expert
Another option for you is a professional. There are credit counselors who can help you with your debt consolidation strategy. Some of them work for non-profit companies. That means their service is for free. You are allowed to make donations but it is not compulsory. These debt experts can give you sound advice that will help you complete your journey towards debt freedom. And since they are practically strangers, you do not have to feel embarrassed about your debt situation.
Finally, you can also turn to strangers online. There are forums that you can visit to air out your financial concerns. Sometimes, you will find someone who went through the same experience as you. Just make sure that when you talk to them, you will not reveal any personal information to them.
There are also blogs that specifically tell successful debt relief stories. Read these stories so you can find your motivation. If they can do it, there is a high chance that you can do it as well.