Debt Solutions

Most of us have been there at some point.  We've accumulated debt.  In some cases, massive debt.  There may be times when you've been wondering just how you are going to get out from under the mountain of debt that just seems to grow and grow, leaving you feeling overwhelmed.  Is there a solution?  There very well may be, but the solutions may take a little determination to implement. 

First thing to remember is to pay yourself first.  It may only be a small amount, but it is your money.  So reward yourself for your hard work, then roll up your sleeves for the even tougher sacrifices. 

Starting off, consolidate as many of your debts as possible into one lump sum.  This way your payments will be funneled into reducing one debt, instead of trying to pay down many different debts at once.  This may also help lower your overall payments to help ease the load involved in eliminating your debt. 

Develop a budget and stick to it.  Live within your means and don't exceed them.  Sit down and calculate your expenses for a typical month, your pay, rent, house payments, utilities, car payments, transportation costs, food, credit card payments, investments, etc. and try to stay within this budget.  The majority of money left over should go toward paying down your debt, with some kept aside for any emergencies that may pop up from time to time.  This can be tough to stick to if you're used to a certain lifestyle, but this is where determination comes into play.  You could occasionally allow yourself to splurge a little, but always try to stick within the framework of your budget.  If you stay determined and persevere, your debt will begin to fall quickly. 

Use credit cards as little as possible.  Credit cards are a great way to build up a credit rating for future major purchases such as a home, or a car, but credit cards are the single largest form of debt.  An ideal scenario would involve not using your credit card at all while attempting to reduce debt, but that is not always possible.  It would be advisable to use your credit card in urgent circumstances only, when you're in immediate need with limited cash flow, otherwise your credit card should not be touched.  When repaying your credit card, always try to make a payment above your minimum.  Even as little as $10 extra per month can help reduce your repayment term by 50%, or even more. 

If you are currently paying down debt on a home loan, you may want to look into refinancing.  Refinancing can help reduce your monthly payments and the part of the money saved can be put into paying down other debt. 

These are just a few options for reducing your debt load, but if you stay determined and stick with a plan, you could be debt free before you know.  It just takes time and the willingness to see things through until the end.  Your wallet and bank account will thank you for the sacrifice and you'll earn a little financial peace of mind.