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The Debt Light Bulb: Strategizing A Route Forward

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It is widely believed that all personal debt has a “light bulb moment”. It may take years for this moment to occur. The light bulb moment is when a person finally, absolutely acknowledges the severity of their debt problem.

Such a moment might seem unnecessary. After all, no person who is in debt is unaware of the problem. They are making repayments, seeking lower interest rates, and seeing their monthly budget crunched– but it is entirely possible for a person to be doing all of these things and still not have had their light bulb moment.

What makes the light bulb moment so distinctive?

With debt, it’s one thing to be aware of the existence of the debt. That’s hard to deny; no one can successfully bury their head in the sand and pretend debt doesn’t exist.

However, many people are well aware of their debt, and perhaps even have ideas about paying it off– but they don’t truly make an effort to rid themselves of the debt. They know it’s there, but they don’t fully commit themselves to paying it off. Ultimately, this means that their debt continues to grow or — at best — doesn’t reduce.

A light bulb moment is the moment that changes everything. It’s the moment when a person finally realizes the toll that their debt is taking; works out just how much they are paying in interest; and finally, absolutely moves towards seeing their need to pay off their debt as their number one priority.

The light bulb moment is a scary one

There’s no denying that the light bulb moment can be terrifying. It’s a stage many people struggle to emotionally deal with, as the careful “it’ll all be fine” stories they have been telling themselves for years begin to pick apart.

The light bulb moment is also the start of a huge period of change in someone’s life. It’s the start of strict budgeting, stern financial management, going without luxuries so as to afford debt repayments. It’s the point in their life when they will have to dig down into a financial reality, entering into discussions with their creditors and taking the time to learn more at regarding their debt management options. Life as they knew it will be paused for however long it takes to clear their debt.

Yet the light bulb moment is crucial

The sooner a person has their light bulb moment, and realizes that, as elegantly details, debt is an emergency, then the sooner that person will move towards being debt free. The initial realization is brutal and tough to cope with, but it’s ultimately the start of the journey towards a permanent improvement in the financial status of an individual.

How to cope with your light bulb moment

  • Take each day at a time. Debt repayment is a long, tough process, so don’t burden yourself with worrying about things in the far-off future.
  • Seek financial advice if you need it.
  • Try to focus on fixing the problem rather than blaming yourself or being regretful for letting the debt become such an issue. Be productive rather than wallowing.

If you experience your personal light bulb moment, there’s no doubt you’re in for a rough time– but you’re also now on the road that leads to a secure financial future. Keep the above three tips in mind as you negotiate the process and, eventually, you’ll recover your finances and begin this exciting new period in your life.