How to stop worrying about debt

If you are a person who wants to clear your defaulted debt, then you must consider the term “cui bono,” which, translated from Latin, means "to whom is it a benefit?" The answer should always be… Me.

If you think clearing your defaulted debt will remove the default from your credit file, we can tell you this will not happen. The default will remain on your credit file for six years. That being said, settling a default may help your lender's perception of you, but there's no guarantee that it will make any difference.

With that in mind, if a relative offers the amount you need to clear the debt, for example, meaning you will successfully obtain a mortgage for a property. Paying it off could make sense; you will benefit.

If your reason is “I just want it gone," it may benefit you mentally or emotionally in the short run, but how will you manage your emotional and mental well-being in the future? How will you cope with priority debts like council tax, utility bills, etc? How does it benefit you financially?

If you’re stressed and worried about your defaulted unsecured debt, it's essential to understand that your mind creates and controls your feelings. They are not shared by others, especially not your creditor.

If you don’t believe this, try calling your creditor, stating just your name and no other details. The representative would have no idea who you are, so they will ask for an account number instead. Once received, you will be asked to wait whilst they find out who you are and why you may be calling. That same representative won’t leave work and spend hours discussing your credit card debt.

The CEO of Barclays PLC will not walk into the office on Monday and ask his PA whether you have paid your credit card bill or not.

So, this means the only person being emotionally and mentally affected by the debt is… You.

If you have followed our “Token Payment Method” and read our article Why do debt collectors settle for less? You may be anxiously waiting for the right offer to settle the debt at a discounted sum. You wait and wait until your emotions get the better of you, so you send an offer to the creditor or debt collector. Your offer gets countered with a much higher settlement amount.

“Maybe I should try and raise the money to settle this debt?” you think to yourself.

Stop! Why would that be at the forefront of your mind?

Now, this is where mindset comes into play.

Finance is a subject that requires you to try and manage your emotions and take a business-like (logical) approach to decision-making. Guess what? This is what this article and this site are designed to help you with.

We got you!

The Real Debt Guy is a qualified financial adviser and a UK debt expert. The information in this article is considered to be true and correct at the publication date.