How an individual handles his or her financial situation is as much emotional as it is practical. Being in a bad financial condition can create a sense of helplessness that prevents an individual from acting in positive ways to make the situation better. Like any challenge, being in debt can be overcome through simple, productive steps. The greatest problem is often the will to do so. Why is determination such a key factor in dealing with the issue of personal debt?
A key financial concept that all people need to comprehend is the idea of debt. Debt is an obligation that one individual owes to another person or corporate entity. There are times when a person requires an amount of financial resources at one time that he or she is unable to accumulate and therefore needs another to supply these resources. In return, the individual or corporate entity charges interest for the use of those funds as they are paid back over time. Wise use of debt will enable a person to acquire items such as a home or an automobile that would be otherwise out of reach. While there are some who eschew debt under any circumstances, most financial professionals feel that debt can be employed wisely to help an individual to attain a higher standard of living. Debt is a financial tool and like all such tools, it must be employed properly and wisely if it is to accomplish what it is intended to.
Debt becomes a serious problem when it is entered into unwisely, imprudently and without a clear plan for paying back the obligation. When debt is seen as a means for acquiring whatever is desired or a shortcut to achieving a certain standard of living, it can become a noose around the neck that strangles a person’s ability to make choices and live as he or she desires. Entering into debt creates a tie to another person or institution that limits the person’s freedom. The payment of debt is closely connected to the integrity of an individual and is used by employers and others to help assess a person’s character. Failure to pay debts or falling behind on debts is an indicator that a person is unable to control his or her lifestyle. It also indicates that a borrower is not a good candidate for employment or other types of agreements to do business.
An essential element in handling a debt problem is determination. Determination involves a firm decision or fixed purpose to accomplish a particular task. Most challenges will involve various difficulties and a lack of determination will often result in failure. To be determined is to make a decision ahead of time to accomplish the task and to refuse to allow any difficulties to prevent the end result from being reached. A determined individual sees the finish line already reached and is committed to seeing the process through until the end. Without a firm commitment, the desire to quit will be too easy to give in to. No process seems worthwhile while in the middle of doing it. The challenges and difficulties will always seem more clear than the end product. It is only by being committed to the rightness of the purpose that a person can stand strong amid the challenges and see it through to a successful end.
Debt can feel like an unattainable mountain at times. Financial challenges are often, at least partially, out of the control of the person who has taken on the debt obligations. Economic cycles often affect those with the least resources the most. Loss of a job or unexpected financial needs can affect even the most prepared individual. Having a plan is a good start, but it is not all that is required.
Determination involves being able to adjust a plan to the current reality and not giving in to frustration when all does not go as planned. No person has a perfect ability to see the future; taking on a debt obligation requires being able to make the necessary changes as financial conditions change. Becoming too fixed in thought will lead to disaster unless a person is committed to paying off the debt. Without such a commitment, the idea of walking away from the obligation or just giving up completely will seem to be the right decision. Not allowing the mountain to overwhelm, but staying fixed on the target is necessary to see the debt challenge overcome and the obligation met.
Determination is primarily a mindset. It is a belief that a person is able to accomplish a task no matter what the current circumstances may look like. Circumstances always give a picture that is inconsistent with reality. Giving in to such deceptions will lead an individual away from the successful course. The fixing of one’s mind on what can be done and the ability to reject negative thoughts is required if a large debt challenge is to be tackled. Confidence that a person can accomplish what is necessary to take care of a debt obligation is the foundation that keeps him or her going during the dark times. Situations always look darkest just when things are about to change. Staying firm in the darkest times and looking for the light to come will enable a person to hang tough and meet the debt obligations that stand in the way.
Debt is neither bad or good by itself. It is one tool among many by which financial success is achieved. The taking on of debt appropriately can be a means of leveraging a person’s financial resources to achieve a higher standard of living. Debt is not a magic bullet, but merely a means of accomplishing certain financial goals. Getting out of debt is never easy, but it can be done. Being determined to meet debt obligations goes a long way. It sets the foundation for chipping away at a debt mountain and helps achieve a goal of financial success and accomplishment.