If you’ve got too much debt, you are probably experience sleepless nights as you worry about how you are going to pay for it. Your phone might be ringing constantly as debt collectors come after you. If this is happening to you, it’s time to take care of your debt. But, do you know your options?
These are four ways to get out of debt and get your life back.
- Debt consolidation
One of the most popular ways to get out of debt is to consolidate it. When you do this, you take all of your credit and roll it into one loan. There are debt consolidation loans available online and locally at places like Debtconsolidationnearme.com. With a debt consolidation loan, people with excessive amounts of credit can avoid having to file for bankruptcy. Debt consolidation also gives people one big payment to make, rather than several of them. Those several payments can be difficult to track. But, having one payment to make is easy to remember, and you can set it up to be automatically deducted from your bank account.
- Live on a bare-bones budget
Some people will get out of debt by budgeting their money differently. With a bare-bones budget, you make large payments to your creditors. Then, you live off of what remains. This means that you might not be able to buy new clothes, go on vacation, or spend a lot on entertainment. You only buy what you need, but you do it with coupons or other cost-saving measures. This method of debt reduction requires willpower at first, but it does become easier after a few months. It’s all about priorities.
- Find a second job
Another way to get out of debt faster is to find a second source of income. Some people will get second jobs or work side-gigs, like driving for Uber, babysitting neighbors, or freelance writing. The key to success with a second stream of income is to dedicate all of the income to paying off debt. If you use the money to buy more things, you haven’t done anything to help yourself. There are plenty of businesses that are looking to hire part-time employees for evening and weekend jobs. You might even be able to find something that you can do from home, as some online companies hire customer service reps from remote locations.
- Negotiate with your creditors
Many people with huge amounts of debt find success reducing their debt by negotiating with their creditors. This is a time-consuming process, because you have to call them and maneuver their phone systems. But, the time is worth it. Many creditors will reduce interest rates for those who ask. Along with creditors, call your Internet provider, cell phone service provider, and utility companies. They might be able to reduce your rates. Utility companies often have budgeting programs available for people who need them. You never know what your creditors will do for you until you ask.