If you look at the statistics of debt consolidation programs, you will see just how high the fall out rate is. That means a lot of people who started to get out of debt through this method quit in the midst of it.
For someone who is seriously considering debt consolidation as their debt relief option, that makes your want to take a second look at your finances right? Well to tell you the truth, there is nothing wrong with the concept of organizing your debts into a single payment – which is the whole premise of debt consolidation. What you do is to arrange all your accounts into one account so payment will be more manageable. This one account ideally has a longer payment term, thus making your monthly contributions smaller.
If that is the idea behind this debt relief program, it makes you wonder why people are giving up on it. Well here is the answer: debt discouragement. People quit because they feel like this debt relief program is not making any progress on their current debt.
If you are intent on going through debt consolidation because you qualify for it financially, do not concentrate on the statistics. If you prefer this over the other options because of the low credit score effects, then there are ways to make sure that this debt relief program will work for you. Getting out of debt is one half the method and the other half involves your attitude towards it.
It all depends on how you set up the program. First of all, you need to create a realistic plan that you can follow. Do not make it too difficult to follow because it will tire you out. When it becomes too hard, you will feel discouraged to the point that you want to give it all up. Try not to make this happen.
You can actually set up milestones for you to have reason to celebrate small successes in your debt consolidation program. Most of the time, this debt solution takes 5 years to complete. You can set up a milestone every year or twice a year to motivate yourself. You can identify how much of your debt is already paid off. It helps to focus on what you have accomplished instead of what you still have to go through. Reward yourself when you reach these milestones so you have something to look forward to.
And while you are going through the program, try not to compare yourself with your family and friends – especially those who are living the life that you used to have. Concentrate on what you are achieving at the moment – getting out of debt. This is not an easy feat to accomplish and if you see that you are making progress, you should feel good about that achievement.
Debt payment really takes time so try not to obsessed about the results of your efforts. Just trust the debt management plan that you created and make slow and steady contributions every month. The important thing is not to give up on it. If you have to read success stories, do that.
Keep in mind your financial goals and the give yourself a break every once in awhile. Your life should not revolve around your debt. You also need to realize that although your money is limited because of debt payments, there are a lot of things that you can do without having to spend too much.