4 mistakes to avoid if you are in debt.

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With the current economic situation in many parts of the world, many people are in debt. Of course several things are responsible for the rising cases of debts globally, not just the economy. For example, some people that are in debt found themselves in that situation because of lifestyle choices. Others are in debt because of life-changing accidents or emergencies. The reasons are many and varied. But then, the focus of this article is not causes of debt, but the mistakes many people in debt make.

So in this article I will present 4 things you should not do if you are in debt. They are:

• Borrowing to offset debts
• Avoiding communication from your Creditor
• Believing that everyone is in debt
• Becoming aggressive towards your creditor

Alright. Lets see how each of the above points make matters worse if you are in debt.

1. Borrowing to offset debts

This is something many people in debt do, especially a long standing debt. They look for a way to borrow and pay back the debt. While that might look like a smart move, it isn't. In fact, it puts you more in debt. It perhaps sends you into an endless circle of debt. Borrowing to pay a debt creates a sad illusion that you have solved a problem, while you have just extended and compounded the problem. Sooner or later, the new creditor will be on your neck and that simply resumes the problem you think you have solved.

Another hidden problem of borrowing to pay a debt is that it prevents you from looking for a permanent solution to the problem. It actually stops you from taking more practical steps to clear your debt. As long as there is a channel to borrow from, you feel relaxed about the whole situation. After all, you can borrow again. Then, there will be no end to your borrowing. Because of the above reason, borrowing to pay a loan should not be encouraged.

2. Avoiding communication from your Creditor

Another big mistake that debtors make is to discontinue or avoid communication with the creditor. That is massively wrong. It sets an alarm for the creditor that you have either forgotten about the debt or not willing at all to pay. I experienced that severally and just recently too. The debtor started avoiding me, although it was hard for him because he is my neighbor. He felt embarrassed since the money involved is not much, and he is unable to pay at the agreed time. But then, I noticed the negative reaction and I did not feel great about it.

So it is really bad to ignore your creditors phone calls, SMS, emails or other forms of communication. It creates more tension on the part of the creditor and pushes them to take more concrete actions against you. The best thing to do is communicate with them. In fact, always initiate the communication and let them know you are working on your repayment. Reply their messages as fast as you see them. The more you communicate with creditors, the more you build trust and buy time from them. If you stop communicating, they will probably become more aggressive in their approach towards the debt.

3. Believing that everyone is in debt

While it may or may not be true that everyone is in debt, its not a great line of reasoning for a debtor. It has this psychological effect that debt is normal and that you are in good company. One sad effect of this is that you feel relaxed. Feeling relaxed is not wrong if you are working hard to repay you debt. But if you you have not made any repayments, you should be concerned.

I have heard some debtors say things like "everyone is owing", "Dangote (the richest man in Africa) is owing", "the government is owing", etc. All these statements might be true, but always banking on such thoughts will kill your eagerness to work on your debt.

The worst mistake here is telling your creditor that everyone is owing. It stings to hear that especially when the debtor has not done anything substantial towards the debt. It makes the creditor believe that you are not willing to do something even when you are capable of it. So please, do not always believe that everyone is in debt - whether that is true or not. And do not tell your creditor to calm down everybody is owing. The correct mindset is that you will one day be debt-free. Work hard and believe that you will pay up and no longer be in debt. Its a more positive approach towards debt management.

4. Becoming aggressive towards your creditor

Getting into fights or arguments with your creditor will likely make matters worse. An aggressive approach will create more problems and a send a negative message that you are not credit worthy. Its better to be more courteous and conversational. Try to discuss any discrepancies in a friendly manner. Do not see your creditor as an enemy even if they use a harsh method on you.

Do not talk about the matter when you are angry as that will lead to more disagreements and fights. When you will talk, try to do so in a tactful and calm manner. Pass the message that you are willing and eager to clear your debts. A calm and mild demeanor will put the creditor in a relaxed condition of mind towards you. That will count for you in the long run.

Conclusion

Debt is like every other problem we face. Your approach matters a lot. If you keep on making mistakes or believing the wrong thing, you risk remaining in debt for a long time. But, taking real actions and having a positive outlook are highly recommended.

What other mistakes do debtors make? Have you been in debt? Have you ever made any of the above mistakes? Share with me in the comment section of this post. Let talk!

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