Debt is not always a bad thing, sometimes it’s inevitable in today’s world. However, when it starts to grow it can be a huge source of stress. Here, we’re going to look at the tips and tricks you can try to make your growing debt a lot less scary and to help you break free and enjoy financial freedom again.
If you are reading this article then odds are you have already tried to scrimp, save, and budget your debt into management. If not, I highly suggest you look into those options first! Learning to budget and manage your spending habits is an invaluable skill that will serve you well for the rest of your life. You might even consider trying to reduce your debt through extra payments. If your day job doesn’t provide enough income for such a thing there are quite a few ways that you can make small amounts on the side. You won’t get rich but you might be able to clear your debt faster!
Tips And Tricks To Make Debt More Manageable
This is a collaborative post. This post may contain affiliate links. If you make a purchase after clicking one of the links I may receive a small commission at no extra cost to you.
Negotiation
If you’re falling behind in your ability to deal with debt, then your first step should be to get in touch with the debt-holder, such as the bank. In most cases, they would rather get what money they can by restructuring your debt, rather than let you deal with the causes of financial difficulty in silence. It’s not always possible, but negotiating your debt with your creditors before they turn to collectors can see them offer you more time, reduce the overall debt, or at least freeze your interest.
Consolidation
If your debt is with creditors who aren’t as likely to negotiate with you on how you can pay it back, then it might be better to move that debt to someone else. Services like hdebtquest.com/options/card-consolidation/ take the debts that you have with your existing creditors and have them assumed by new creditors instead. This isn’t likely to reduce the debt amount, in general, but it can result in lower repayments as it can reduce the interest rates on some debts. This isn’t always the case. For instance, credit cards have a lower interest rate so they’re not likely to be improved by consolidation.
Discharge
It is possible to have your debts entirely discharged. However, the circumstances that make this possible are not always widely available. Programs like http://www.dtss.us/debt-discharge.html can work up to debt discharge. For most people, the only widely available option is bankruptcy. While this does discharge debt, it usually comes at the cost of any valuable assets owned by the individual, as well as a significant credit hit. So, while it’s worth looking at your debt discharge options, it’s important to recognize they might not be as easy to utilize.
Settlement
Another option that isn’t strictly available to everyone as it requires you to have sizeable cash reserves on hand. Most people in debt don’t have a lot of cash on them. However, if you do, then you may be able to negotiate a settlement with your creditors. This effectively means that they will close the debt if you can pay off an agreed and reduced portion of the overall debt. This will still negatively affect your credit but it will at least result in the debt being entirely closed after the fact.
It’s unfair to suggest that everyone is solely responsible for managing debt that they may have had no control over accruing. However, it’s important to at least remember that there are always options. Hopefully, those mentioned above can help you find a solution.
