Getting into debt is so easy, it just takes a bit of careless spending and a bad budget and before you know it, you’re stuck with multiple credit cards to pay off. But getting out of debt, on the other hand, is so hard. Being stuck under a mountain of debt is so stressful and it causes a lot of problems. It’s one of the biggest causes of arguments between couples and the increased stress can lead to mental health problems. It’s also going to put your finances under a lot of strain because any spare money you have is disappearing straight into debt repayments which means you can’t save any money for the future. When you’re in that situation, you might feel like it’s completely hopeless and you’ll never be able to get out of debt and rebuild your finances again, but that’s not true. It is going to be difficult but even if you’re in serious debt, you can try these things to get out of it.
This is a last resort option and you should make sure to exhaust every other option first but in some cases, declaring bankruptcy is the best thing to do. If you simply can’t afford to make the repayments on your debts and there is no way that you can turn your financial situation around, you should get in touch with a chapter 13 bankruptcy lawyer and explain the situation to them. They’ll take you through the process and help you to declare bankruptcy so you can get those debts written off. However, you need to be aware that you’ll have that black mark on your record for years to come and it will make it very difficult to get credit for things like houses or cars again in the future so it’s not a decision that you should take lightly.
Find A Side Income
A lot of people find themselves in a situation where they can only afford to pay off the minimum repayments on their debts, and most of that is just the interest so they’re not clearing the debt very quickly at all. If you can pay back more each month and get rid of the debt faster, you’ll pay less money in interest over time. That’s why it’s a good idea to find a side income of some sort and then you can use all of those extra earnings to pay down the debt. There are plenty of ways that you can earn extra money online and use that to pay off your debts. It’s going to be hard work, but it’s only for a short period until you’re back on your feet and it’s better than paying debts off for years to come.
Bare Bones Budget
Hopefully, you’ve already got a budget, but how extreme is it? Most people will cut out a lot of luxuries but you still want to enjoy yourself so you probably still factor in a few expenses that aren’t essential. But if you have serious debt problems, you should consider creating a bare bones budget that only covers your home payments, utility bills, and food etc. without spending any money on luxuries. It’s not the most exciting way to live life but you can pay your debts off a lot faster if you do that.
Don’t give up hope if you’re buried under a mountain of debt, there’s always a way out. Just follow these steps and you can regain your financial independence quickly.