How do you deal with debt?
There is so much advice out there on how to get out of debt or deal with debt, are there any strategies that you have tried in your own life? Have they been successful?
Stop incurring more debt right away and employ the snowball method to get out debt as quickly as possible.
The first thing you can do is to NOT get into more debt...if you can't afford it...don't buy it! Concentrate on paying down your debt, not making it worse.
Try consolidating your debt, so all of what you owe is in one easy to manage place and you won't have to worry about forgetting or letting a part of your debt slip to the land of forgotten debt.
If you don't want to consolidate your debt, pay off your debts one at a time. You can start with paying off the smallest first, or work toward paying off the debt with the highest interest rate first.
Either way, the money has to be paid one way or another.
Oh ya, and DON'T PANIC! Debt is manageable. You just need to determine a plan of action...budget yourself - decide how much you can pay each month and stick to that, pay more when you can afford to.
Cut back on unnecessary expenses - do you buy your lunch at work every day? Stop that! start packing your lunch. Do you hit Starbucks a few times a week for your morning coffee cup? Cut that out! Make coffee at home and take it to work with you in a travel mug. Do you and your friends or your significant other go to dinner and a movie every weekend? Cut back on those types of outings and cook at home and hit up a Redbox.
I am a bankruptcy attorney and, despite my profession, would suggest taking several steps to avoid bankruptcy if possible.
First, take a cold hard look at your income and expenses. What do you make each month? What are your bills? I am always shocked at how many people are unknowingly in the red each month. If this is the case, you are simply not in a position to address your debt.
Once you have a realistic income of your disposable income each month, the next step is to look at your debt. Are their credit cards with extremely high interest rates? If so, pay those off first. Are you able to pay at least the minimum payment each month? If not, you are again in a position where it will be difficult to address your debt.
Finally, examine your bills each month to determine if and where you can cut back. Things like cable TV and eating out can likely be eliminated. However, be sure that any cut-backs you make are realistic.
A debt management plan will only help you with unsecured debts.
Examples of unsecured borrowing:
Write a budget to see if you will be able to afford repayments on a consolidated loan.
Contact http://www.bankruptcy-insolvency.co.uk/ … utions.php for more help
Instead of enrolling in a debt consolidation or debt settlement program, why not ask your bank for a lower interest rate on your credit cards and simultaneously increase your monthly credit card payment(s).
MoneyChimp.com tells us that "Even a small monthly sacrifice--buy a little less, reduce your debt a little more--can make a big difference."
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