Ways to mitigate your debt issues and avoid being a defaulter

It is never too easy to manage a difficult debt situation. More often than not, you might not even be aware of the fact that you are spiralling towards a monetary fiasco and that you have a sizeable debt piling up in your backyard.

Debts creep on you slowly, and even before you know it, they annihilate your life and all that you have ever worked for. Therefore, it is important that you know how to mitigate the financial crisis and do what needs to be done to manage your debt issues.

Snap out of denial

The very first thing that you must do to avoid being held up in the vicious cycle of debt is to snap out of denial. You must acknowledge that you have a situation that needs to be navigated through carefully. Turning a blind eye to your financial fiasco will only aggravate the condition and leave you in more trouble to make your way through. Therefore, you must analyze every aspect that there is to your financial condition and only then think of ways to manage the situation. Mitigating problems start in the brain. Once you reach the stage of self-actualization, battling through any tough situation becomes a lot easier.

Create a calendar for yourself

You can have a manual calendar or a digital one according to the needs of your situation. But have a calendar nevertheless. Mark the dates when your bills and loan payments are due, and also set reminders if you can so that you never miss a deadline. Missing deadlines can be dangerous since you might be fined for the next term of payment. There might even be legal issues on missing more than one deadline. Having a calendar can abate debt issues and help you make your payments on time.

Prioritize your payments

In case you have more than one debt to handle, you need to prioritize which debts you need to clear off first. You could even get some professional debt help to get assistance with the process. Prioritizing payments can help you deal with your situation better. Another side of the story is that taking one debt at a time to pay off will also boost your confidence. When you realize that you have cleared off one debt, it will only help you gain more confidence and push you towards taking up the other payments with more faith in yourself.

Look for alternate methods of income

You could always do with some extra money. And if you have several debts to clear off, it is always better to scour for opportunities where you can make some extra money to pay off your debts. Look for part-time jobs or jobs where you can work from home and according to your own timeline. This can help you earn extra cash while also paying off your debts in chunks.

Always plan your expenses

You must always be wise enough to plan your expenses for each month. This will give you an idea about what and how much to spend and how to go about the process. Once you have your month’s expenses laid out in front of you, it shall become easy for you to plan how much you must spend and how you must do so, way ahead of time. You can also keep a separate account that manages the payments of your debt issues. This way, your expenses shall be well managed, plus it shall also give you complete control over your financial life.


Managing debts, in all sense, can be quite a task. It can be complicated and messy. But it is nothing that cannot be managed if you know how to handle situations. The very first thing that you must do is be aware of your condition and only then can you proceed to take up the right mitigation steps.

Rajhu S Goraai is a passionate stock and commodity researcher. Travel addict and photographer. Owner at Leading Business Blog. Connect him on Linkedin.