How To Eliminate Your Debt Stress

America is a debt society. We run on debt. Without it, our economy would collapse. But if you are in serious debt, it can cause you great stress and anxiety.

Some debt is fine. As long as your monthly salary or other income can cover your mortgage, your credit card bills, and other debts comfortably, you are in control of your debt situation and are generally stress free. Unfortunately, however, many Americans are one financial emergency away from financial disaster.

Many things can set off a financial emergency. You could experience an unexpected job loss and have difficulty finding another job. A major illness in the family or a medical emergency can clear out your bank account in no time at all. A divorce can burden you with child support and alimony leaving you with little income left. As a nation, we are going through one of the worst economic times in American history. In this environment, it doesn't take much to push the average worker's economic situation over the brink.

And as one month turns into two, and two months turn into three, you begin to get calls from your utility companies. Your phone company is threatening to cut off your service. Your gas company wants to shut down your heat. And your mortgage company is threatening foreclosure.

The reason that most people with debt feel stress is that they believe that they have no options except to pay the bills that show up in their mailbox. Of course everyone should pay their bills and most of us want to. But sometimes, life intercedes and you simply don't have the money. In these situations there are a couple of easy rules for you to follow that will help lift some of the stress and anxiety from your shoulders.

First, relax. Sit down and relax. Yes, it sounds easy, but until you relax, you'll be making potentially critical financial decisions under stress, which is never the right way to make any decision. Your debts are not going to change whether you're anxious or relaxed, so you may as well relax.

Secondly, sort your bills into four priority piles, and pay them in this order -

1) Necessary medical, food, and mortgage bills. These are essential bills that you need to survive. This may also include your automobile related bills if you need your automobile to make your living and bring in income.

2) Federal tax and other government bills and fees. The federal government has many powers to go after your assets and generally make your life miserable. After you pay your essential survival bills, these should be next on your list.

3) Utility bills - these are bills that you need to pay, but you don't necessarily have to pay them all at once. You can make partial payments to these services and still keep your utilities turned on.

4) All other bills - this includes credit card bills and any other non-secured loans that you have. These are all loans that you can make minimum payments on. Your credit may be affected but at least you won't lose any of your essentials. In addition, these creditors are the most amenable to debt settlement negotiations.

Initially, when you look at the pile of debt that you owe, it can be paralyzing and stressful. But stress is only a state of mind. When it comes to financial matters, there are always options available to you. Once you realize this, your mind becomes amazingly clear. You will not only become stress free, but you will be in a better state of mind to come up with a plan to get rid of your debts and enable you to live a normal life again.