Please, DO NOT DESPAIR. Although you already know that preventing debt, be it holiday or otherwise, is the goal, you really don't need to hear that over, and over, and over. What you need, is action, a plan, and some self confidence. Expect that you will, indeed, reach a zero balance when you pay off that debt; it is attainable, and you can do it. Trust that you will and put a method of paying off your debt into action.

If one has money tucked away in investments or savings, you have an extra option; however, to touch those investments depends solely on your purpose for having them there. If a portion of your savings was meant for emergencies, and if you are in such distress, or will be, if you don't get the debt paid off soon, then you have that option of transferring funds from there to do that. If the interest you receive from your investments, if monthly, is more than the interest you are paying, by all means, leave your investments safely out of reach; however, if you are paying out more in interest on your debt, than you receive in interest from your investments, it might be wiser to borrow or take from your investments. There are of course other factors you need to consider before using investments to pay off debt. Talk with your bank financial representative or financial advisor, or an accountant, if you need advice in that regard.

Otherwise, if you want to prolong things a bit, by not touching your investments- or, maybe you don't even have them to begin with-pay off your debt at either a regular affordable amount per month, or do that, plus allow yourself to pay off more per month should your monthly income/expenses permit that.

There are several ways in which you can reduce your monthly expenses, although if you are already on a tight budget and tend to be frugal as it is, finding areas where you can spend less will be more difficult. Just for example, look at your allotted transportation costs per month; if you could carpool or use some other mode of transportation (bus, walk, cycle, rollerbladeyes, I've seen some folk in the city rollerblading to work), that of course would free up some income to apply towards an increased monthly payment towards your debt. Your food or monthly entertainment expenses allotted, those also, are areas where you might be able to eliminate a normal expense by, say, not going out to the movies that week, or that month, or cutting back on the amount you allow for "munchies," or taking the girlfriend, or boyfriend (yes, that too happens nowadays), out to the restaurant and/or bar or a movie.

So...hopefully from this, you will begin to believe that you haven't "choked" yourself with that debt. Many times, we panic, or we do not "tolerate" the condition we have created for ourselves. To see your debt as a "temporary problem" and an inconvenience, should eliminate that, "There's no way out" feeling. There is always a way out; we may not appreciate it at the time, but it does exist.

Although, optimism is difficult to feel at this time, don't let debt loom over you and dominate the rest of your life. Continue to do normal activities, but within your budget which enables you to pay off your debt, and if your expectations are too high, such as the monthly amount you pay per month, then be prepared to and accept that it is OK to lower the amount and your expectations.

Believe me, the experience, though uncomfortable has many lessons to learn, which you will, and also adds to your personal experience and knowledge.

All the very best is wished for you in however you decide to deal with this.

Learn more about this author, Wendy Loft.
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