Roll Up Your Sleeves And Dig Upward: Getting Out Of Debt
It is immensely troubling, but more and more people are lugging debt around with them than ever before. This is a crippling realisation in more ways than one. You have the financial burden, stress and anxiety, not knowing where you stand in the law and general debt fatigue. Despite how bad your situation is, though, there is some good news, and that is your options are limited to just one solution: stop digging a bigger hole and start digging your way out. It may seem like an impossible task – it may seem like the light above you is well and truly out of reach – but the only way you are going to get yourself back on track is by rolling your sleeves up and getting to it.
Face It Head On
Hiding is only going to make your situation worse. Whether we are talking about personal debt or business debt, hiding won’t help. Instead, you need to face the music and know exactly what you are faced with. So, if it relates to your finances, get it in front of you. Credit card debts, student loans, SBA loan debts, utility bills, monthly expenses – anything and everything that falls within this bell curve. Once you have these, you need to work out whether they exceed your net income or whether you still come out on top. Once you’ve done this, it is time to make a plan.
Creating A Repayment Plan
One thing you are going to learn pretty quickly is that your debts are not all equal, which means you need to work out which debts to pay off first. As a rule of thumb, you will want to focus your money on those debts with the highest interest first, such as credit card debts, as well as those where the treasury uses aggressive collection tactics, such as SBA loans. To help you stick to these repayments, cut up all your credit cards and get onto the cash-only diet. Trust us on that.
Please Seek Help
There may be a scenario where many hands don’t make light work, this is not one of those scenarios, however. So, once you have a list of all the debts you owe, it is time to seek professional assistance. If you have defaulted on your SBA loans, then it is well worth seeking out some specialist SBA Attorneys to guide you back into the black. For most other debts, though, a credit counsellor will suffice. Whatever the cause, these professionals will be able to supply you with helpful tips and keep you on the right track with regards to your repayment plans. They may also come in handy when it comes to negotiating with your creditors by adding a little weight to your argument.
Do All You Can To Pay More
Paying the minimum each month is not a good strategy to use. In fact, when it comes to your high-interest debts, you may not be paying enough to ever climb out of the whole you are in. That is why we recommend you do all you can to pay more than the minimum and double-up on the highest-interest debts if possible. This could mean freeing up some cash by selling possessions or assets, it could mean cancelling subscriptions – whatever it is, this strategy will be worth it. You could even find you are debt free within a couple of years.
