Tips And Guide For Debt And Loan Management

At the heart of any Anonymous group are the 12 steps. They form the backbone and core of any so-called 12-step group. A caveat: Do not be intimidated by the religious overtones you are about to read. DA is strictly nondenominational. Whatever your views are on religion, you will be accepted in DA. Know this, too: These 12 steps have saved many a life.

1. We admitted we were powerless over debt—that our lives had become unmanageable.
2. We came to believe that a power greater than ourselves could restore us to sanity.
3. We made a decision to turn our will and our lives over to the care of God, as we understood him.
4. We made a searching and fearless moral inventory of ourselves.
5. We admitted to God, to ourselves, and to another human being the exact nature of our wrongs.
6. We were entirely ready to have God remove all these defects of character.
7. We humbly asked Him to remove our shortcomings.
8. We made a list of all persons we had harmed and became willing to make amends to them all.
9. We made direct amends to such people wherever possible, except when to do so would injure them or others.
10. We continued to take personal inventory and when we were wrong promptly admitted it.
11. We sought through prayer and meditation to improve our conscious contact with God, as we understood Him, praying only for knowledge of His will for us and the power to carry that out.
12. Having had a spiritual awakening as the result of these steps, we tried to carry this message to compulsive debtors and to practice these principles in all our affairs.

These 12 steps are based upon the highly successful Alcoholics Anonymous 12 steps. They are not easy to follow, but you can rest assured that if you follow them, your life will never be the same.

If you decide that Debtors Anonymous is right for you, you should know what you are getting into. The core of the program is its meetings. They provide love and support for those going through difficult life changes.
Most meetings start with the chairperson or secretary welcoming everyone and then introducing himself or herself by saying: “Hello. My name is (first name only), and I am a compulsive debtor. Welcome to the (name of group) meeting of Debtors Anonymous.” Many groups choose to open their meetings with a prayer, such as the Serenity prayer, or with a few moments of silent meditation.

A reading of the preamble usually follows the prayer or meditation:
Debtors Anonymous is fellowship of men and women who share their experience, strength, and hope with each other so that they may solve their common problem and help others to recover from compulsive debting. The only requirement for membership is desire to stop incurring unsecured debt. Our primary purpose is to stay solvent and help other compulsive debtors to achieve solvency. Some groups pass around copies of the “12 Steps” and “Tools of Debtors Anonymous” for readings by group members. After the readings, groups will ask newcomers and out of-towners to introduce themselves so that they can be welcomed. Next, the speaker is introduced and asked to share his or her experience with the group. This sharing usually involves explaining what happened before the speaker came to DA, how the speaker found DA, and what life has been like since coming to DA. The length of the speaker’s sharing depends on the meeting’s format. At designated speaker meetings, the speaker may have 30 minutes or more; at discussion meetings, he or she may have perhaps 10 or 15 minutes.
When the speaker is finished, the meeting is then open for sharing from the group. Announcements and closing statements conclude the meeting. The chairperson will normally reiterate that the opinions expressed are those of the individuals who gave them and that the things heard were strictly confidential.

It may be hard for you to decide whether attending a DA meeting makes sense for you and your situation. Certainly it is not an easy conclusion to come to, however necessary this step may be. Attend a meeting; there is no commitment necessary, and going to a meeting will help you get a feel for the group.
Another way to see whether DA might help you is to take the following quiz that DA has put together. Be brave. Take this test; you have nothing to lose but your indebtedness. Columbus took a chance, and you know what happened to him, don’t you? He died. (We jest!)
Take the following quiz and then tally up your score:

1. Are your debts making your home life unhappy?
2. Does the pressure of your debts distract you from your daily work?
3. Are your debts affecting your reputation?
4. Do your debts cause you to think less of yourself?
5. Have you ever given false information in order to obtain credit?
6. Have you ever made unrealistic promises to your creditors?
7. Does the pressure of your debts make you careless of the welfare of your family?
8. Do you ever fear that your employer, family, or friends will learn the extent of your total indebtedness?
9. When faced with a difficult financial situation, does the prospect of borrowing give you an inordinate feeling of relief?
10. Does the pressure of your debts cause you to have difficulty in sleeping?
11. Has the pressure of your debts ever caused you to consider getting drunk?
12. Have you ever borrowed money without giving adequate consideration to the rate of interest you are required to pay?
13. Do you usually expect a negative response when you are subject to a credit investigation?
14. Have you ever developed a strict regimen for paying off your debts, only to break it under pressure?
15. Do you justify your debts by telling yourself that you are superior to the “other” people, and when you get your “break,” you’ll be out of debt overnight?

If you answered yes to eight or more of these questions, you have a problem with compulsive debt or are well on your way to having one. Do not be ashamed if you decide that you need help. Asking for help is the first step toward solvency. You are to be commended for having the courage to ask for help.

The only requirement for DA membership is a desire to stop using any form of unsecured debt. DA is not allied with any sect, denomination, political group, organization, or institution. It neither endorses nor opposes any cause. Its primary purpose is to help other compulsive debtors to achieve solvency and peace of mind. There are no dues or fees for DA membership. It is a self-supporting organization run on contributions.
The keys to the program are these concepts:

• Abstinence. Members practice abstinence by not incurring any more unsecured debt, taking one day at a time.
• Meetings. Members attend meetings for solidarity and camaraderie.
• Record maintenance. DA members maintain records of their daily income and expenses, as well as the retirement of any portions of their outstanding debts.
• Anonymity. Members practice anonymity, which allows them freedom of expression by assuring that what is said at meetings or to other DA members at any time will not be repeated.
• Telephone. Members maintain phone contact with one another, especially during difficult steps in their recovery.
• Pressure-relief groups and pressure-relief meetings. After they have gained some familiarity with the DA program, members organize pressure-relief groups that consist of the member and two other people from the group who have been abstinent for three months. The group meets to review the member’s financial situation.
• Spending plans. The pressure-relief meeting usually results in the formulation of a spending plan (putting needs first) and an action plan (for resolving indebtedness). Making these plans is considered one of the main steps for creating financial solvency.
• Sponsorship. A sponsor is an abstinent member of DA more experienced in working the 12 steps. The sponsor aids the member in implementing the action plan and in working the steps.
• Service. DA believes that only through service can members give to others what has been so given to each one.

This debt stuff is a serious matter under any circumstances. However, for some, it is more serious than for others. For some people, debt issues are so out of control that going into debt is more of an addiction than a predicament. In that case, the situation requires more than the ideas being presented in this blog. It requires a fundamental restructuring of some basic psychological matters and the support of other people in the same boat. You can get that help through a group called Debtors Anonymous (DA).
In essence, DA is a group for people whose indebtedness issues rise to the level of some sort of compulsive behavior that they feel they have no control over, for those whose debt problems are destroying their lives the way alcohol or gambling can destroy lives. If you feel that your debt issues are not that drastic, DA is probably not for you. If, on the other hand, you feel that going into debt is a matter out of your control, you may have just found your answer.
Anonymous, Narcotics Anonymous, and the granddaddy of them all, Alcoholics Anonymous (AA). Indeed, Debtors Anonymous began as an offshoot of AA.
Debtors Anonymous began in 1968 when some members from Alcoholics Anonymous held a meeting to discuss their money problems. They first called themselves the “Penny Pinchers” and later “Capital Builders.” By 1971, the essence of the DA program had unfolded in much the same way AA had begun: with an understanding that for these members, the act of debting itself was a disease. The founding members knew that their best solution was to adapt the 12 steps of Alcoholics Anonymous, and so they did.
Debtors Anonymous evolved into a fellowship of men and women who share their experiences, strength, and hope with each other so that they can all recover from compulsive debting. The only requirement for membership is a desire to stop incurring unsecured debt. Today, there are over 500 DA meetings throughout the United States and in 13 other countries throughout the world.