There are tons of people who reach that level where is enough, is enough, and they just can’t deal with their debt. As much as they wished, the debt problem doesn’t really go away. It keeps coming back and each time it comes back more frequently.
It definitely keeps getting worse from letter to calls to a collection agent harassing you. All the while, your credit score dips, blocking access to home, car, and education loans.
Debt is not pretty, so here’s a simple and guaranteed way of getting yourself out of a plaguing debt that just keeps getting worse and worse.
Throw out the Credit Card
If you really want to get out of debt, you will throw away your credit cards. One of the main reasons why you have gotten into debt, and why you are probably still getting more into debt is credit cards. The best option – stop using them and start paying for everything with cash. The next best option, if you can’t stop using credit cards – use only one, preferable the one with the lowest interest rate.
Spend Less, Save, Pay your Debts
The only way your debt goes away is if you pay it. You need to calculate your income, your expenses, and find out where you can spend less and save more money. Frequently eating out, going to movies and buying clothes can be considered as luxuries. Find out what luxuries you spend on, and if you can’t cut them altogether, then at least reduce them to the minimum. Also find a way to earn more income – a promotion, a part time job, or freelancing are all options.
You need to have more money to pay your debts.
Talk to your Creditors
Sit down with your creditors and have a talk with them. You can ask for several things:
- Lower the interest rate: The reason your debt keeps inflating is because of the interest rate. So ask them to lower it. You will have to give them a reason to do so like improve credit score or a financial emergency.
- Repayment Plan: This is definitely a good idea if the creditor has turned up the heat on you (especially through a collection agent). You set a repayment plan with the creditor. This way, you renegotiate the debt and get a new interest rate, minimum payment and time period.
- Consolidate the Debt: You can talk to all your creditors and have the debt consolidated. This way, the debt becomes easier to manage.
Get Professional Assistance
One’s person’s debt emergency is another person’s not-to-worry-yet debt period. Each person’s debt situation is unique and a professional debt expert will be able to assist your own debt situation. At times, restructuring your financial situation may be enough, while at other times, debt consolidation is the right choice, and at another time, declaring bankruptcy may be the best course.
Having a debt burden is frustrating and tiring, the quicker you get off it, the better your life will be.