Pay my bills on time and cure your Credit Card Debt:

Despite my best efforts to be fiscally responsible and pay my bills on time, I’ve wound up in serious debt. How did this happen, and how can I get out of this financial mess and rebuild my nest egg?

First of all, don’t beat yourself up. Many people recover from terrible financial blunders to lead financially vigorous lives. Even the most severe debt situations can be tackled, provided that one develops a sound plan of action and follows it through.

It’s also very unhelpful to spend time perseverating and being anxious about your debt. Negative self-talk will only increase your perception of yourself as someone “mired in debt.” This kind of thinking won’t resolve your problems.

But I am “mired in debt!” How can I think of myself in any other way?

It may be true that you are thousands or even tens of thousands of dollars behind on your payments and that your financial picture looks bleak. But studies show that our thoughts have profound effects on our behaviors and actions. By working to change your nervous debt-related thoughts through therapy and meditation, you may be able to discover new solutions to your problems and silence that constant drumbeat of anxiety.

Will reducing my anxiety about my debt really help? How?

Perhaps. When you react to your financial situation with thoughtless anxiety, you may make impulsive decisions that can compound your problems. Getting to a “financially healthy” place may require restructuring your attitudes towards budgeting and managing money. So by first resolving some of your anxiety about your debt, you may be able to step outside your constant sense of urgency and catalyze real change.

But what if I need to resolve my debts NOW?

Acting out of urgency, as we have discussed, can lead to inaccurate or inefficient decision-making. You didn’t get into debt overnight; don’t expect to resolve your debts overnight, either. “Quick fix” counselors who promise to wipe away your debt within days to weeks are either lying to you or selling you bankruptcy. To move forward effectively, you need a sound plan. To build that plan, you need good advice from people who understand the system and who’ve helped others in similar situations.

It’s become a cliché in the world of advice-giving to note that the Chinese symbol for “danger” can also mean “opportunity.” While no one wants to have to dig out from under mountains of debt, seize this opportunity to renew your approach to finance and reset your life goals. Be persistent in your efforts, and keep a view towards the long term.