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Paying off debt is always a challenge and the goal can never be realized unless the debtor makes solid changes to his or her money habits. These would be money habits in the areas of saving, spending, budgeting, and borrowing. Poor borrowing habits are particularly troublesome when it comes to paying off debt. Households are waking up to the fact that they need to change there borrowing habits if they ever have any hope in paying off debt. Here are some areas to focus on when it comes to changing borrowing habits and begin paying off debt.

The first borrowing habit to change is to stop borrowing so often. Or, a better way is to stop any further borrowing while paying off debt. A habit of excessive borrowing is very much like addictions such as smoking, alcohol abuse, and eating fattening foods. And, as the compulsive borrower continues to feed this habit, borrowing is actually viewed much the same way as regular income. Compulsive borrowers begin to set up their budgets based on a paycheck and how much credit is available on their credit cards. The compulsive borrowing habit is further reinforced by a system of quick rewards through the mere laying down of a plastic card. The best solution is to cut off borrowing altogether and learn new behaviors for spending money that you only have and can afford.

Pitying yourself over your debt will only hinder paying off debt. When you sit down one day and realize just how bad your debt situation is, it is tempting to waste time in self-pity or guilt. Believe it or not, multitudes of households are in the same situation. Self-pity should not be confused with concern. A concerned debtor actively pursues ways for paying off debt. People absorbed in self-pity spend all of their time and energy on trying to get others to feel sorry for them. Keep in mind that you have committed no crime by being in too much debt so you should not feel sorry for yourself.

The most difficult step towards paying off debt is admitting the dire situation. Of course this is true with any addictive behavior. Compulsive borrowers and spenders live in denial over their debt situation and even avoid keeping record of just how much debt they have. It is too painful for these people to bear looking at their total liability so they ignore it as if it will go away. All too often, the admittance to a problem does not occur in the debtor until the home is foreclosed on, the car repossessed, and the job is lost. Paying off debt at this point is not impossible but it is highly unlikely. Bankruptcy then appears to be the only option but that also should be avoided. Keep in mind that it even if you are at these advanced stages of debt; admit it to yourself so that you can start making plans for paying off debt.

Do not quit when you suffer setbacks in paying off debt. Just as with any worthwhile endeavor, success does not come easy. In most cases, all have good intentions when taking the beginning steps towards paying off debt but life is never predictable. For example, a person could lose a job, exhaust all unemployment benefits, and not know where the next meal is coming from because the money ran out. This obviously would be a situation where borrowing would be desperately needed. But all borrowing does not have to be on credit cards or title loans. Seek the help of family, borrow against your life insurance, or cash out your 401K retirement plan in order to get some cash to make it another day.