No matter how financially smart and responsible you are,
chances are that you still have some debt in your life. After all, in this day
and age, with the poor state of the economy and everything being so expensive,
it’s virtually impossible not to wrack up some debt. In the end, though, it’s
not the debt itself that matters but how you handle it. If you’re ready to
start paying off your debts, improving your credit, and gaining the freedom
that goes along with those actions, there are many things you can do.
Don’t Pay Just the Minimum
Credit card debt is easily the most prolific type of debt
facing Americans today. You set out with good intentions for using your credit
card, but, before you know it, your debts are mounting, and you can barely
afford to make your credit card payments. It happens to the best of us, but, no
matter how great the temptation, don’t just pay off that pesky “minimum amount
due” and be done with it. If you do that, you’ll wrack up so much in interest
charges that your debt will likely grow even larger. Even if you have to resort
to paying only 5 or 10 dollars more than the minimum amount, do it! You’ll get
“out of the hole” a whole lot faster that way.
Set a Budget, and Stick to It
Even if you’re making a lot of money that doesn’t mean you
need to be spending a lot of money. The wealthiest people tend to be those who
keep their spending in check. Sit down and figure out how much you make per
month and then how much you need to be paying in bills and necessary expenses
per month. If you don’t make enough to meet your debts, then you have some
serious thinking and restructuring to do. If you do and you’re still struggling
to make ends meet, then look for areas where you can cut back. And, if you’re
one of the lucky ones who still has some money left over after all the
necessary expenses are taken care of, a budget will enable you to have a little
fun money left over. In any case, setting and sticking to a budget will set you
up for success.
Explore Your Options
If you’re truly in insurmountable debt, meaning that, no
matter what you do or how much you curtail your spending, there’s still no
feasible way out, then it may be time to look into the other options that are
out there. Whether it’s filing for bankruptcy, which is only recommended in
extreme circumstances, having a serious talk with your creditors, or
consolidating your debt, the important thing to remember is that, no matter
what, you do have options. In fact, that’s an important thing to keep in mind
no matter what: you always have choices and options for better managing your
money. You might need some professional, expert help to find all of them,
depending on your circumstances, but they are out there.