The most important thing to do first is to really want to solve the problem. The more you think about how to cut costs and make more money, the more likely you are to do it. Write down your spending and income goals. Writing down your goals makes it much more likely that you will reach them.
Of course, you can't keep adding to your debt. Cut up your credit cards and store cards! You can't keep spending and adding to the problem. At first, this isn't easy, but if you do it, you'll show yourself and others that you're serious.
Next, talk to your creditors and tell them in a positive way that you plan to solve the problem. Ask them for any help they can give. You should ask for a lower interest rate or anything else they might be able to offer as an incentive. Don't be afraid to ask for help. Many people who work for these companies have a lot of experience and will often give you ideas you hadn't thought of. Always be kind but firm, and don't let anyone upset you. They would much rather you make some payments than none at all, and they will probably be very willing to work with you.
If asking your current creditor doesn't help and/or if you owe money to less trustworthy companies or so-called "loan sharks," you really need to reach out to some trustworthy companies for help. There are a lot of good, honest organisations out there whose goal is to help you work things out with your creditors.
They hear your story every day, so you probably won't shock or surprise them. Most of the time, they are happy to help. If you are sure that you will be able to pay, you should get a good answer.
You should also write out a budget and talk to your creditors. Try to be as real as you can. When you've done this once, it's much easier to do it again and again in the following months. Check your budget every day as time goes on. Seeing yourself on track is a great way to keep yourself going. At first, financial stability may seem like a long way off, but sticking to a budget soon becomes normal, and it is much easier to stop spending too much money than you might think at first.
If you owe money to more than one person, try to pay off the ones who charge the most interest first. Each month, try to pay more than the minimum amount due. The minimum is just a little more than the interest-only fee, so even a little extra each month makes a big difference.
Depending on how much debt you have, you can get a loan to pay off your other debts.
at a lower rate of interest, but for a longer period of time. This can lower your monthly payments and make it easier for you to pay off your debt. This is best if you don't have too much debt and are paying a high interest rate on what you already owe. If you own your own home, you can also re-mortgage it or borrow more money against its value. This usually comes with a low interest rate and a long time to pay it back.
Instead of taking out more loans, you could look for other ways to make money. You might be able to work more hours at your current job, or you might be able to find some other part-time jobs. Working more can sometimes make you less likely to spend.
eBay is another way to make money. If you're in debt because you bought a lot of things, why not sell them? Even though you probably won't get the same amount back, you could make a big dent in your debt.
Many people have cut their debt by following this advice and taking the steps above, which are all common sense. You can do it, too.
