The Simplicity of Getting out of Debt

Do you dread checking the mail? Do you let all the unrecognized phone numbers go directly to voicemail? If this is the case you may suffer from debt. Many times when people let debt get out of control in their lives it takes on a life all its own. If you’re tired of avoiding creditors and want to get your life back it’s important to start right away and know that there are steps you can take to get yourself back on track financially. Here are a few simple steps to get you back on the road to financial control.

  1. Make a list of all your debt. It’s hard to get started if you don’t know where you are starting from. Write down everything including that $50 you owe your best friend. Total up your monthly payments, including the ones you are behind on, if any. Once you have a list you will know just how far you’ll have to climb to get back where you need to be.
  2. Contact any companies you are behind on your payments with and see if you can arrange a payment plan. Believe it or not these companies really just want to avoid taking a loss so the quicker you get in touch with them the more likely they are to be willing to bargain with you. In this stage avoid robbing Peter to pay Paul. In other words don’t get behind to another creditor just to make another happy by giving them more. Be realistic about what you can pay. If you have any lenders that might be able to give you a deferment or let you skip a month now is the time to take advantage of any help offered.
  3. Cut up any credit cards you still have and avoid taking on any additional debt. I know it might be tempting to take out a loan to try and consolidate your current debt load but more debt will never help you get out of debt. Instead you may consider taking on a temporary second job, having a garage sale, or making some additional money doing odd jobs.

Just remember getting out of debt won’t happen overnight but if you take the time to make a plan it will be much easier to see the light at the end of the tunnel.

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