Being in Debt Can Be Overwelming

Finding yourself in debt is overwhelming as it is, but figuring out how to get rid of debt? Well, that can become a whole new financial ball game. Bill collectors are calling, you can't get approved for anything and debt just keeps piling up with no end in sight. As with any ball game, it takes work reach success. Debt doesn't simply disappear overnight; it takes dedication and work to achieve last credit card debt reduction. With the right amount of planning, getting to the top doesn't have to give you an aneurysm in the process.


1. Avoid Budget Blunders with Automatic Payments
There's no doubting that trying to maintain a budget is often unsuccessful. It requires a lot of strict planning and being able to stick to that plan. Setting up automatic payments for your bills can make budgeting easier and eliminate the need to worry about your bills by allowing each payment to be automatically deducted from your bank account.

2. Pay More Than the Minimum Required Payment
Paying the minimum amount may seem like a good idea initially, leaving you more money to spare on the spot while keeping your bills paid, right? Wrong. When you only make the minimum payment, you are ultimately subjecting yourself to higher interest rates in the long run.

3. Negotiate with Collectors to Settle Your Debts
No one enjoys being hassled by debt collectors. Sometimes all it takes to get them off of your back is stopping to talk to them and determine a solution for settling debt. You can often make a negotiation that allows a payment schedule that suits your needs. If you make valid efforts to reduce your debt, even by paying small amounts at a time, working together with the collectors to reduce your debt will ultimately have the greater outcome in the end.

4. Harness Your Skills
The amount of money that you can spend is probably not endless. However, the amount of money that you could make has no boundaries if you harness your skills and use them to generate more income. If your primary job is working as a teacher, consider generating additional income by performing side work such as tutoring or individual courses.

5. Borrow Your Own Money
Borrowing against your own money is always an option if you have run out of alternatives. Life insurance, home equity loans and 401(k)s are all under the policies that allow borrowing.

6. Tackle One Debt at a Time
Trying to take on all of your debts at once is a headache waiting to happen. Instead, focus first on those that have the lowest rates on interest. Ultimately, they will be the easiest to get paid off. Once they are paid, begin focusing your attention on the larger debts at hand.

Monique Rowe is a guest writer that writes for Franklin Debt Relief.