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What Are Underappreciated Challenges of Reducing Credit Card Debt?

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If you’ve ever read an article on reducing your debt, you might have whispered in amazement, “That sounds so easy!” Unfortunately, trying to chip away at credit card debt is more complicated and emotionally charged than most bloggers make it out to be. You might find your enthusiasm flagging and be tempted to start racking up debts again.

Below are some underappreciated challenges of tackling debt that few people talk about, along with some strategies for coping.

Not Being Able to Have Fun with Friends

Everyone knows they need to create a budget to tackle debt and find ways to reduce unnecessary spending. But that unnecessary spending usually subsidizes all the fun people have with their friends. Imagine the following:

  • Your friends want to go out to a fancy restaurant, but you are cutting back, so you stay home instead.
  • Your friends want to purchase Miami Dolphin tickets, but they are too expensive.
  • A friend throws a ritzy bachelorette party—in Vegas! The only problem is you need to pay for the plane ticket and your hotel.

It is very difficult to say “no” in these situations, but you have to if you want to stick to your budget. Many people report feeling like they’ve lost their friends once they start tackling debt.

How to cope? Organize fun events for your friends at your place. Think Bingo night or other board games. Ask everyone to bring something small, like a bag of chips or bottles of soda, or you can try to organize a true pot luck supper.

Leaving Your Home

Some budgets can be balanced by paring back on groceries and switching to brewing your own coffee at home. Unfortunately, other people are living so far beyond their means that they need to make larger cuts. And by deeper cuts, we mean they need to take a hard look at their largest expenses—which, for most people, is their shelter costs.

If your mortgage is swallowing your entire budget and then some, you probably need to move. The same is true if your rent is too high, though in either case you might try to get a roommate if you are single. However, when push comes to shove, many people need to consider leaving their homes. This is very upsetting for many people.

If it looks increasingly obvious you can’t stay put, you should consider where you can move. Can your parents take you back? Do friends or family have a place you could stay in for a few months while you sell your home?

Also take a hard look at the housing market. Ideally, you will sell the home for enough to cover the balance of your mortgage. If not, you should probably discuss your situation with an attorney.

Give Nowack & Olson a Call

Our firm has handled over 20,000 consumer bankruptcies. If you feel pushed to the brink because of credit cards or medical debt, we can help. At Nowack & Olson, PLLC, we have extensive experience with both Chapter 7 and Chapter 13 bankruptcies, and we are eager to talk to you.

Schedule your free consultation with one of our Plantation bankruptcy attorneys at 888-813-4737.

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