To get out of debt, you'll have to make some sacrifices and understand that you need to take charge of your spending. The first step would be to stop spending money on things you don't need and cut back on wasteful spending. In fact, don't buy anything else besides what you have to. Label your needs with words like "urgent," "very important," "somewhat important," "not necessary," etc. Once you've set and stuck to a strict budget, you'll be able to save money for fun, but until then, don't spend money on things you don't need.
Budgeting
Make a budget where you list everything you earn and spend. Don't hide anything. Don't forget to include any expenses that don't happen every day, since your total spending isn't just made up of everyday costs. If you plan it out, you'll see that you have expenses every day, every week, every month, every two months, every year, twice a year, etc. When making a budget, you need to be very careful because it will tell you how much money you can put toward paying off your debt.
Debt Settlement Agencies
You can get in touch with a debt settlement company. These agencies help people who are in debt and have been known to reduce people's debt by up to 70% in some cases. However, you shouldn't expect such a big reduction because it only happens in rare cases. But you can always expect that the amount of interest you pay will go down, and sometimes the length of your loans will be changed. Sometimes, but less often, it is possible to get a cut on the principal of loans and credit card debts. In a strange way, you have a better chance of getting a bigger discount when your debt is out of control and you can't pay back as much.
Consolidation Loans
You can also apply for a loan to pay off all of your debts at once. These are called consolidation loans. Both the overall interest rate and the monthly payments will go down by a lot. More importantly, you'll end up with a single fixed monthly payment that will give you some certainty about your financial future. Keep in mind, though, that if this happens, you may be tempted to spend money on things you've been putting off because you don't have enough. Don't do that, or you might get back into the cycle of debt you just got out of. Your debt will go up again, you won't be able to consolidate again, and all your work will be for nothing.
