Thought for today:
In DA we focus on the total person, leaving aside the “quick fixes”. Refinancing a loan, or renegotiate the terms or rates of a loan, needs to make sense in the context of our Spending Plan that puts our needs first.
When we negotiate refinancing rates and terms that benefit us it’s called “debt shifting”. It is in our best interest to do this. But if we rely on this without dealing with underlying issues around the disease of compulsive debting, we often wind up in worse debt than before.
Problems with debt consolidation loans:
One problem with debt consolidation loans is that they are often for a longer period than the original debt. This means you pay more interest to get rid of a debt. Sometimes a lot more.
Debt companies are not always reputable. Some, like pay-day lenders, charge enormous interest. Others may design a contract in such a way that it is at their discretion whether to pay off your debt or not, even if they have taken significant payments from you.
Another problem is that such loans don’t address the need to change our behaviors around money. We’re presented with a lower monthly payment, which tempts us to feel like we are flush with money again, and to spend more.
Members shares:
“I consolidated my debts only to find out that I am paying twice as much as what I originally owed, spaced out over many years.”
“My debting didn’t get under control until I accepted that, left untreated, I would repeat my past mistakes with money. Admitting powerlessness, I let go of trying to have someone rescue me all the time, and latched on to the DA program.”
“I was desperate, so I arranged for a debt company to take over my debts. But I found out that they never paid anything to my original creditors! So I now have to bring them to court, which terrifies me!”
Doing what works:
Behaviors can change over time in DA when we work the program. We need to:
- stop debting one day at a time
- put our needs first
- track our numbers,
- have PRG meetings,
- put together a Spending Plan
- develop and abide by an Action Plan.
Negotiating our own debt forces us to face the truth and create a Spending Plan which includes payments to pay down the debt. It forces us to live within our means, and to become people who no longer need to debt to survive and thrive.
Ask:
Have I decided I want to change into a person that doesn’t need to debt any more?
Meditation for today:
Sometimes we find ourselves stuck in a downward spiral, and we turn to financial experts who may not have our best interest in mind. If we feel pressured to decide on the spot, it can help to release the expectations that these “experts” impose on us.
If we focus instead on simplifying our lives with The Steps, and enjoying what we can, we can learn to become free of this “spirit of lack”. If we let go of panic, and seek to live in this moment, however tentatively, we experience the feeling once again that we have “plenty of time, money and love!”
Affirmation for today:
“I will allow myself to enjoy a simple pleasure today.”
“I am free of panic and remorse.”
“My actions slowly build a new life.
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