If you’re doing everything you can to pay off as much of your debt as possible, you’ll likely have a list of sacrifices you need to make to dig yourself out your financial hole.
In addition to that list, you should also have a list of sacrifices you are not willing to make to live debt-free.
You may feel some aspects of your life or personality aren’t worth giving up.
Make sure you don’t experience psychological loss while attempting to experience financial gain.
Your Credit Score
If you’re thinking about debt settlement as a way to escape debt, know that you may trade your debt for a low credit score.
Before you pull the trigger, do some digging to determine how much worse off your credit score may be if your debts go unpaid.
One thing to bear in mind with debt settlement is the fact that you may not have to pay back all your debts in full.
If you plan on applying for a loan or credit card in the near future, having a low credit score could see you hit with a rejection.
Getting Out of the House
Maybe a lot of your money went towards nights out on the town, going to bars or eating out. To cut back, you may not go out as much as you use to.
While this is undoubtedly a great way to save money, you shouldn’t become a shut-in.
Look for free events in your community you may not have known about before. Your local library, museum or art district may host free events that interest you.
In fact, there could be personal finance classes with a focus on gurus like Don Gayhardt, Dave Ramsey and Suze Orman.
Giving to Those Closest to You
Did you use to give your closest friends and family members nice gifts before you started getting your financial house in order?
If you did, you may be under the impression you can no longer display your generosity and show those closest to you that you care.
Rather than stop giving gifts altogether, change how you give instead.
Offer to invest some personal time with friends and family you haven’t seen in a while, which can translate to a Skype chat if you live far away.
Babysit, house sit or pet sit for free. Brainstorm about what nonmaterial gifts you can offer.
Spending Time With Those Closest to You
You could be embarrassed about your financial situation and not see your friends and family as much as you did in the past.
Or, perhaps you’re so focused on remodeling your financial house that close friendships go by the wayside.
Either way, you have to ask yourself what’s the use of being debt-free if you’re also friend-free.
Don’t let shame or being a bit too focused on your financial goals keep you from enjoying spending time with friends and family.
On the other hand, you may have family members and friends who are a bad influence on you right now. Those closest to you who go out too much or spend too much money could make you feel pressured to spend just as much as they do.
You’ll be doing yourself a favor cutting back on time spent with those individuals.
Let them know what’s going on in your life so they don’t feel like you’re giving them the brush off or that they did something wrong.
Your Integrity
When you’re doing everything you can to save money, you may be tempted to take advantage of people who are financially healthy.
Resist this urge at all costs. Even if the person never realizes what you’re doing, your guilt could haunt you for the rest of your life. Maintain your dignity, and always listen to your conscience.
There’s a fine line between not sacrificing enough and giving up too much to better manage your finances. Use the above tips to realize where you can draw the line.