If you are struggling with debt, it may seem as if the world is a very bleak place. With mounting bills and collection agencies after you, it may seem like life will never be the same again.
Take a deep breath. Tackling your debt is easier than you think. All you need is a little bit of resolve and a rock solid plan that you will stick with. Here are some of the tips
Establish a budget. If you haven’t done so already, create a budget for your expenses. Trim down your costs to a bare minimum. This applies to all parts of your expenditure – cable TV, satellite services, cell phone or landline accounts, groceries, discretionary shopping, smokes, coffee, expensive hobbies and partying. If it’s not a bare necessity, skip it for a bit.
Round up your assets and sell some. It can be difficult to let go of your favorite stuff, but it is one of the fastest ways to make some quick cash. Focus on the larger assets like home or car. Smaller stuff can be sold on ebay, craigslist or garage sale.
Find out about hardship programs. Most financial institutions to whom you owe money may have hardship programs. These programs could potentially decrease you interest rates or offer payment deferments. Ask about it – if you don’t ask, you may be leaving a lot of money on the table.
Seek help. If you have any well meaning relatives, this is the time to seek help. While you could run out and get a payday loan when it is time to pay the loan, it will add to your debt worries. Instead work out an amicable arrangement with someone who trusts you and you will be motivated to work hard towards paying back.
Increase your income. When in debt most people focus on reducing their expenses. But an even more potent part of the equation might be to increase your income. You may not be aware of it, but there are literally hundreds of different money making ideas that you can capitalize on to earn some extra money. Check out the inspiring stories of people just like you who what used this exact approach to get rid of their debts and subsequently flourish.
The bottom line is that no one approach is better than the other. What matters in the end is that you make a commitment, create a plan and then stick with it, no matter what comes your way. And before you know it, you will be the one telling others your success story of how at one time you were riddled with debt and here you are today, a true success story.