The Debt Support Center

The Journey:
Just Found Out
Dealing With It
Recover & Thrive
Worst Case

Facing the Initial Impact of Debt

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Debt

Every person is unique, but when you face a challenge like being in debt, you are never alone. Countless men and women have faced the exact same problem and have survived and thrived. The following guide is designed to help you navigate your journey with the best information and resources that helped other survivors when they faced the same challenge.

TSC has scoured the Internet and assembled links to the very best resources about debt: Articles, blogs, forums and tools that can help you make better decisions and take action to overcome the range of physical, emotional and other challenges that you face.

As you’ll see, we always welcome your ideas and suggestions to make this Debt Guide even more helpful to survivors like you.


JUST FOUND OUT

Survivors Say: Best Resources for Debt

Survivors say these are the best resources for those who have just found out -- check them out to find out more about your options.

The Big Picture


Americans are drowning in debt. One example: The average household has $11,000 to $12,000 in credit-card debt.  From credit cards to car loans to educations that we pay for years after graduation, debt can come in many forms. Problems arise with debt when it cannot be effectively managed. Many people are capable of carrying and managing a debt load, while others are not able to budget or spend responsibly. Besides having a financial impact, debt can hurt your job opportunities, relationships and peace of mind.

About.com: Financial Planning - Beware of The Warning Signs of Too Much Debt

Your Debt


The first thing you need to do is to determine what is "good debt," that is, debt that will help you build your wealth, and what is "bad debt."  process what caused your debt, and record it. Keeping track of the journey toward the black will help you avoid future pitfalls.

Your World

See how much you owe compared to how much you make, so you can better calculate how quickly you can eliminate your debt load.

Care One Credit Counseling: Understanding Your Debt-To-Income Ratio

Consider the effects of debt on your health, and try not to get stressed out while lowering your debt load.

Money Matters 101: Debt and Your Health

Telling friends and family about your debt can be embarassing, however, it is a good way to create accountability and gain their support. Allowing others to help you will enable you to better build up your finances.

Bankrate: Tackling Debt as a Family

Debt Myths

Dealing With Debt

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Information and Suggested Links for Debt Survivors


Survivors say these are the best guides -- check them out to find more about how to deal with debt.

What Can be Done for Debt Immediately


The first thing you can do to get your debt under control is manage your finances. Making a budget for all your spending will help you allocate appropriate funds toward paying off debt.

Snowball your debt. This is a simple process of doing away with what's unnecessary and using those funds to pay off all of your debts in a snowball fashion.

ZenHabits: Eliminate Debt with the Snowball

Possible Ways to Eliminate Debt

Decide what debt to pay off first. The best thing to do is to first pay off debt with the highest interest rates.

Bankrate: What Debt To Pay Off First

When you're trying to get out of debt and repair credit, it helps to save as much money as possible. This article is provided via Storknet.com, and provides a no nonsense approach to cutting unnecessary spending.

Suite101.com: Reduce Everyday Household Expenses

If you've tried to reduce debt yourself and still can't, use this Bankrate guide to determine whether you need outside help.

Bankrate: Seeking Debt Help

Financial Professionals Who Can Help With Debt

Use a financial planner to get you back on track and help you pay off your debts, but make sure you get an experienced, accredited expert

About.com: Financial Planning - Finding a Financial Advisor

For those very deep in debt, a non-profit credit counseling agency may be the best bet for solving your financial problems. But again, do your homework first.

Books Survivors Recommend

Information and Recommended Links for Co-Survivors


How You Can Help

  • People with excessive debt need to be surrounded by good financial examples. Offering such an example, whether by helping with a budget or explaining how you keep your spending under control, can lead to positive results for the debt survivor.
  • Suggest free or cheap social outings. This boosts a debt survivor's spirits and helps him apply more funds towards his debt.
  • Share stories with her about your own experiences with debt and other financial-survival stories – when lost in a dark tunnel, it's always nice to know there is a light at the end.

What to Say

  • “If you discipline yourself and appropriately apply your finances, you can get out of debt in a reasonable amount of time.”
  • “The first thing you need to do is create a realistic budget.”
  • “Let me help you crunch some numbers so you can eliminate excessive spending.”

What Not to Say

  • “You're probably going to have to file for bankruptcy to get out of this mess.”
  • “You brought this on yourself with your poor spending habits.”
  • “Once in debt, you'll always be in debt.”

Helping a survivor deal with day-to-day challenges

  • Work – Helping someone deal with her debt will allow her to avoid additional financial woes and opportunity costs associated with owing a lot of money. For example, a poor credit record can greatly affect one's job prospects. ABC News: How Bad Credit Can Affect Job Prospects
  • School – College offers a good edcation but unfortunately, it also can add on debt in the form of student loans. Students should consider alternatives such as working during school, researching and applying for grants and scholarships, and even slowing the education process down to stay in line with their budget.  MSN Money: 3 Ways to Avoid the Student-Loan Trap

How to Build a Support Network

  • Set up your TSC Co-Survivor Profile
  • Create a support group for your loved one
  • Interact, provide updates and share your debt experiences

Recover & Thrive

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At The Survivors Club we are focused on helping you survive your dilemma. One exciting aspect of survival is the opportunity to take all you have learned and apply it to your daily life and thrive. Debt may slow you down slightly in the financial arena, but by no means should it ever bring you to a halt.

Recovery and Recurrence

When your goal is to get out of debt, you'll have to make sacrifices. Even when you have tackled  your debt load, you need to stay financially responsible for the long term.

My Two Dollars: Steps You Need to Take to Be More Financially Responsible

Once you're out of debt, you never want to go back. Maintaining excellent financial habits will mean that you'll eventually be paying for more things with cash, adding more to savings and avoiding the emotional stress associated with financial woes.

eHow: How to Stay Out of Debt

If you're really struggling, you may decide that debt consolidation is a better way to manage your debts. If you're able to consolidate all of your debt into a payment with a low interest rate, it may be the option for you. Before you take the leap, educate yourself on the “too good to be true” debt consolidation offers.
When you think your debt is insurmountable, think again. There are uplifting stories of survivors who were drowning in debt then gained the disciplined focus needed to turn their lives back around.

MSN Money: Escape Stories from Debt Hell

Giving Back – Helping other survivors of debt

  • Create a TSC Profile and begin interacting
  • Share your story – How you found your way out of your debt scenario
  • Become a mentor for another debt survivor

Worst Case

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When Debt Sticks Around

If your debt is out of control, you have a few options, ranging from credit counseling to debt consolidation, and even bankruptcy. Before you make a drastic move, find out which one works best for you.
Comments & Stories
The TSC community wants to hear from you. Please share your comments, tips, favorite resources and stories. We'll post them here as soon as possible.

Total Comments: 1


Managing debt

2009-04-30 02:44:53
by: Jacob A

Managing debt is an invaluable tool to have. Since times are a bit tighter these days, managing debt is at the forefront of a lot of people's minds. In order to manage debt without adding the enormous hassle of dealing with credit card companies and interest rates, a lot of people are turning to payday loans for their short-term credit needs. It's a small loan that you pay back quickly, usually your next payday, for a normally reasonable fee. Credit lending among first tier lenders has become almost non-existent. The desperation to get back to unregulated activity and profit makes for little surprise that payday loans are increasingly popular tools for managing debt.

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