Being in debt sucks. It’s hard not to feel helpless when you owe money, especially when the person or entity you owe money to keeps hounding you for it.
Debt, however, doesn’t have to a lifelong burden. Sure, you’ll usually owe money for home payments, absurd student loans, or a new car. Yet with careful management and planning, you can get out of debt and move on to bigger and better things.
Until then, being in debt is the worst.
When you’re in debt, you’re subjected to a constant stream of overdue bills and angry phone calls from debt collectors. Even the strongest person would crack under pressure when someone they don’t know don’t know calls and chews them out. Debt collectors know this, and use this tactic to get you to pay your overdue bills, feelings be damned. It’s the only thing that makes them money, and they’ll do anything to help keep their (unfortunate, terrible) jobs.
What can you do?
Sharon Epperson (of CNBC fame) recently reported on how to deal with debt collectors, especially the harassing ones. While avoiding your debt could get you into more trouble, you also don’t have to put up with any offensive shenanigans. Here’s how to tackle them head-on:
Should you invest when you’re in debt?
Don’t even think about it. Paying off your debt is the most important thing you can do to achieve financial stability. If you owe any outstanding balance (not including house or car payments) and invest in the stock market, you will only drive yourself further into debt. You will also end up likely using your investments to cover your debt in the future, which goes against the nature of investing in the first place.
Figure out a way to pay back your debt before you make any large financial decision. The sooner you’re out of debt, the sooner you can plan on avoiding more debt in the future. Only when you’re truly debt free should you start investing.