When you’re in debt, you may be trying to ignore it. And if you are, that’s largely normal. It’s something that many of us do. Because being in debt can be overwhelming. You know that you need to pay it off, but you’re also just trying to stay afloat. So you bury your head and you keep on swimming. But before long, you know that you have to start dealing with your deal. This is the only way that it’s actually going to go away. So, you have to really face up to your situation and be prepared to tackle this head on. If you’re really keen to make a change here, then you’re going to want to make sure that you follow this ultimate guide to getting out of debt.
- Be Aware Of What You Owe
First of all, you have to make sure that you’re aware of what you owe. If you’re going to have any chance of paying it all down, you have to know exactly what figure you need to pay. This means that you’ll want to get out all of your bills (if you have several) and tally up the totals. Write down the total figure that you owe to each company or for each financial product, and then write down a total. That way, you’ll know what you’re dealing with.
- Speak To Your Creditors
From here, you’re then going to want to think about talking to the companies that you owe money to. When you’re struggling, they will actually want to help you. So give them a call, inform them of your situation, and see if you can get a better rate for your credit. If you’ve been a customer for a long time, you will often find that you can get a great offer to bring down the rate of the balance so that you pay less interest. But you’ll only know if you ask.
- Start Snowballing
Now, you’re going to want to write down the interest rates next to the debts that you have – whether you were able to get that promotional rate of not. Then, you’re going to want to snowball. As Dave Ramsey Solutions suggests, start to pay off the amount with the highest interest rate first. Then, you’ll be costing yourself less money. Just continue to do this until all accounts are paid off.
- Consider Different Avenues
But at the same time, if you’re massively struggling and you cannot cope with the rates you’re paying, seek alternative solutions. Think about bankruptcy with someone such as John A. Steinberger & Associates, P.C. or even debt consolidation. By working to stop this situation in its tracks, you’ll feel much better.
- Address Your Lifestyle
Finally, you then need to take a look at your lifestyle. Because if you’re overspending and getting into more debt, then you have a problem. So think about how you can cut your expenses and start to reduce your living costs so that you have more to pay towards your debts.