One Step at a Time: How to Start Turning Debt Around
Friday, November 3, 2017, 6:00 AM | Leave Comment
Debt can feel like an insurmountable beast which cannot be easily tamed. The good news is that there are ways out of debt. The less-good news is that they require patience and discipline in order to take their desired effect.
In order to get out of debt, you need to have a well-developed plan.
Here are four tips for how to start turning debt around.
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Tackle One Debt at a Time
If you’re in particularly deep debt, you likely have more than one source of money troubles. This could include debt from multiple credit cards, car payments, and health bills. There might be a temptation to see them all as one mess of debt and want to run away from them.
However, you should confront each one individually. Think about which one can be paid off the soonest and devise the proper payment plan. From there, you can tackle the other debts until they’re all gone or greatly reduced.
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Take out a Debt Consolidation Loan
When you have trouble keeping track of your debts, a debt consolidation loan can be a great solution. With these, you can have multiple debts combined into one easy to understand loan.
Even better, these loans often have reduced interest rates, so you’d be paying less than you would otherwise. With these loans, you can make your debt all the more bearable.
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Save
Being in debt can make you feel like you’re always going to owe money, so you should just spend without thinking. Instead, you should be saving money as much as you can.
Put aside money in a savings or other account meant for debt. If you’re consistent about it, you’ll see the benefits in due time when you have money set aside that you can use specifically for tackling your debt.
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Consider Bankruptcy
Sometimes, debt can become particularly intense and your options becoming increasingly limited. If this is the case, you might want to work with someone like the Law Office of Barbara B. Braziel or another attorney to declare bankruptcy.
Through declaring bankruptcy, you tell your debtors that you are unable to pay off the money you owe them. This is a decision that should be made very carefully, as it can have effects such as hurting your credit rating. However, it might be your last option for debt relief.
We hope this has given you a good idea of how to start turning your debt around. It’s certainly a stressful experience, but the best way to address your debt is head-on.
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Kara Masterson is a freelance writer from West Jordan, Utah. She graduated from the University of Utah and enjoys writing and spending time with her dog, Max.
