5 Ways To Cure Debt Fatigue — Aside From Paying Down Debt
Written by
Angela Mae
Edited by
Jenna Klaverweiden
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Oftentimes, you’ll hear people say the only way to financial freedom is to become debt-free. That’s a good goal to have, but it’s easier said than done. Simply finding a debt repayment strategy — no matter how good it is — isn’t necessarily going to get you out of debt, especially if you’re already feeling debt fatigue.
“Debt fatigue isn’t just about numbers — it’s emotional,” said Taylor Kovar, CFP, founder and CEO of 11 Financial. “It hits when you’ve been paying and paying, and your balance barely budges. You start thinking, ‘Why am I even doing this?’ That kind of mental exhaustion can be just as heavy as the debt itself.”
If this sounds familiar, try not to stress. Here are some top ways to cure debt fatigue.
Know You’re Not Alone
Even when it feels like you’re the only one struggling with debt, you’re not alone. According to an AmeriSave survey, here’s how many other Americans are feeling about their debts:
- A third of respondents said credit card debt is their biggest financial stressor.
- About 10% of respondents said they owe over $15,000 in credit card debt.
- Nearly 1 in 3 Americans spend over $1,000 each month on credit card payments (leading to more financial strain).
- Homeowners in blue states are 1.7 times more likely to say they’re “stressed but managing” their debt.
- Homeowners in red states are twice as likely to feel overwhelmed by debt multiple times a month.
As for debt fatigue, 1 in 10 people said they’ve essentially given up on trying to reduce their credit card debt because they feel too overwhelmed or don’t know where to begin.
It’s Financial Literacy Month, so now’s the time to take charge of your financial future. It’s also a good time to remind yourself that you aren’t alone and that there are ways to achieve debt relief besides simply paying down your debts.
Start With Your Budget
Make a budget, but also make sure it’s realistic.
“Understanding where your money is going and having control of your spending can help you take control of the situation,” said Ashley Morgan, attorney and owner of Ashley F. Morgan Law.
In part, this means finding ways to eliminate other expenses so you can either pay down your debts or stop using your credit cards. But it also means knowing any cutbacks can be temporary.
Speak With a Credit Counselor
Having trouble making a budget? A nonprofit credit counseling agency could help.
According to the Consumer Financial Protection Bureau, a credit counselor can help you create a budget, advise you on handling your finances (and debts), offer educational materials and workshops, and establish a debt management plan.
Credit counseling is usually low-cost or free. You can find a reputable one via the Financial Counseling Association of America or the National Foundation for Credit Counseling, per the Consumer Financial Protection Bureau.
Understand Your ‘Money Personality’
Just as everyone views money differently, everyone also handles debt differently. So it’s vital to understand your view on money and how it impacts your ability to manage it effectively.
“We all have a Money Personality — some people love saving, others love spending, some crave security, and others are all about freedom or taking risks,” Kovar said. “If your debt payoff strategy doesn’t match the way you naturally think about money, it’s going to feel like a constant battle.”
Kovar suggested taking a money personality assessment to figure out what works for you. “It helps you get clear on your tendencies so you can build a plan that works for you, not just some cookie-cutter budget,” he said.
Consider Other Debt Relief Options
There are other debt relief options you can consider as well. According to the Federal Trade Commission, other options include debt settlement and debt consolidation.
If paying it off isn’t an option, you may be able to negotiate with your creditors to reduce the amount of debt owed with a debt settlement. This doesn’t always work, and it can impact your credit, but it could also make your current debts more manageable.
And if you’re struggling with multiple monthly payments, consolidating your debts into one loan can make it easier to manage them. It might even get you a lower interest rate (depending on your credit).
Weigh your options carefully before choosing one. And don’t be afraid to ask a professional — or someone you trust — for help or advice.
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