Q&A: I HAVE SO MUCH DEBT. What Should I Do?


Someone asked me this question over the weekend. He said his debt is causing him misery. We discussed a number of points. I want to share some of them here.

In fact, in my four years of writing articles and blogs, the topic of debt has been one of the most popular. This demonstrates that it’s a universal problem.

Point number 1: Stop Digging.

Borrowing money to pay back the other person you owe? That’s digging a hole to fill up another whole. It’s a worst of time and effort.


Point number 2: Talk to them

Let’s be honest, this is actually embarrassing. Maybe you were so confident with your promises of paying back when you were borrowing.
But hey, things have changed and it’s not possible anymore. You are just human, you can’t tell how the future will be.

The people you owe money are just people. Even if it’s a company, behind it there are people. I once owed money to a bank and I was failing to pay back. I had to go back to talk to them to reduce my monthly payment amount and increase the period of repayment. Needless to say, I paid some hefty penalties. Ouch…

Point number 3: Your expenses

Just what exactly are you spending on? Who are you spending on? Maybe it’s time for an honest conversation. We are sometimes under pressure from others to spend. I think this applies more to men. You might have madam to spend on and she might have expensive taste, or relatives and dependents. Maybe it’s time, o be honest about what you can really afford.

Point number 4: You’ve gat this

The person who I was discussing with said he feels miserable because about three-quarters of his salary goes into debt repayment. Of course, I said that’s too much. In fact, I don’t think you should spend more than 30% of your income on debt clearing.

You still have a life to live. No?

Drowning in debt is no laughing matter. It can affect you emotionally. In fact some people have even committed suicide over this issue. But you will come of it.

I later emailed him a PDF copy of the book You Were Born Rich by Bob Proctor. It’s all about money. I also recommend the Richest Man in Babylon for better personal finance management.



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