So you want to get out of debt and start getting wealthy? Is there anyone that wants to get into debt in the the first place? How does that happen? It seems to be that it’s a heck of a lot easier to attain debt than it is to get rid of it.
From my personal experience working as a Financial Life Planner I have found that people generally attempt to tackle the problem of eliminating debt the wrong way- and by doing so we remain in the same cycle of debt problems and excessive interest throughout most of our lives.
We attempt to solve the problem through external means- such as rolling the debt onto 0% intro -interest cards for a short time or working with consolidation companies to make attempts at negotiating lower payments or even filing bankruptcy to start all over again. While I am not suggesting that any of these means may not be effective in particular situations- I am suggesting that this is not typically the true solution for most people.
I believe that we need to look at the root cause of why we piled up debt in the first place. It is through the process of looking at our past and understanding our personal relationship with money that allows for us to be able to see why we make the financial decisions that we do.
If one can separate the decision from the emotions around the situation than one can make a more conscious financial decision, which tends to be the right one.
I have my clients do a few simple but exploratory assignments to move in this direction:
1. Think about your past and how your parents thought around money. Are there any similarities or differences?
2. What were the joyful and sorrowful moments around money when you were a child?
3. How have these memories shaped your way of thinking around money today and how you make financial decisions?
This is a start to the deeper questions that everyone needs to ask themselves if they are to fully understand their own relationship with money. And it is through this process that each one of us will gain Financial Consciousness. When you get to that level you will be able to not only establish a method/plan to pay down your debt but you will also be less likely to fail and more likely to stay debt free for the rest of your life.
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