Unfortunately, debt has become practically a fact of life for most people. That doesn’t always mean it’s a disaster, of course. But, the majority of those with any kind of debt would admit that they’d like to get rid of it sooner rather than later. Of course, for some, debt is an overwhelming feature of their life responsible for all kinds of anxiety.
If you land in or close to this second group, you need to take steps toward handling your debt. The first step is acknowledging that it’s there and not going away on its own. In fact, it will only get worse if you don’t address it.
Don’t make the mistake of thinking you’ll use one line of credit to pay off another. You still hear people recommending this for some reason, but the truth is that it’s just a great way to ensure your debt remains quick sand: something you’re constantly getting deeper and deeper into.
Take stock of the situation. If you’re truly going to have trouble paying back your creditors, contact them and say as much. Creditors will deal with someone having problems with their debt much better than they will someone they think is avoiding them and intent on not paying.
We’ve all heard the squeaky wheel gets the oil, but that doesn’t always apply. Just because one creditor is making the most noise doesn’t mean you should pay them off first. Always prioritize your debt and start with the most important like rent/mortgage, utilities, etc. First address the ones most likely to radically change your quality of life if you don’t pay them. Then you can move on to others.
Finally, start looking for ways to bring in more income. Can you handle a part-time job? Are there things you’re unnecessarily spending money on? Every little bit helps as you’ll keep your creditors happy and help keep the interest you owe to a minimum.