So you are wondering how you can get out of debt are you? Well it is possible, even if you think that your situation is beyond help. Good on you for trying to find out a solution and welcome to the first steps of you becoming debt free.
This blog is dedicated to debt because I too am in debt. Lots of it in fact. Heck if you like I will give you some of my debt. No? OK well let’s take a look at how you can get out of debt. If you would like to see how bad my debt is check out the my debt progress category or carry on reading this post so you can sort out your own debt. I don’t mind, honest.
Face up to your Debt Problems
The fact that you are here, reading this post on your computer or smartphone means you are starting to realise you have a debt problem. The realisation that you have a problem is a good thing because now you know you have a problem, you can start to do something about it.
Burying your head in the sand only prolongs things and the longer you leave it, the more work you will have to do to start sorting things out. Acting today means getting out of debt faster than if you leave things for another six months.
It’s budget time
With all the realisations out of the way it is time to start some work. Sorry about that. Your budget is important because you need to know about how much you are paying out, how much you are earning and how much debt you have. You do this so you can start to get a better picture of your finances. Understanding your finances helps you with your debt and should allow you to start to put a plan in place to escape it.
You should make a list of all your expenses and take the total amount from what you earn. What you are left with is known as your disposable income and this income is what you will use to start to pay back your debts.
Time to open the Bills and Letters
You know that big pile of post you have? Good, it’s time to open it and see what lovely letters you have been receiving. Take a look at what they say and remember that they are just words.
If you have recently moved house and not told anyone, now would be the time to let your creditors know where you are, assuming you want to start sorting out your debt.
Whilst digging through your mountain of paper, try to make a note of who you owe money to along with the amount you owe them.
Talking to your creditors
It might seem daunting having to talk to your creditors but don’t worry. Remember that you are trying to sort out the situation. Don’t feel pressurised into paying more than you can afford. If a creditor pressures you tell them that you are making an effort to sort it out and agreeing to an unrealistic payment amount is not going to help anyone. If they annoy you, hang up and call back later.
Alternatively to avoid speaking to them altogether you could always write to or e-mail them. That way you can write down how much you can offer and then wait for their reply.
Be sure to ask your creditors to freeze any charges and interest they are adding on.
Getting a solution for your debt
Now you have a better idea of what your debt is made up of, and you know what you pay and to who, it is time to look at putting in place a plan to solve your debt once and for all.
There are a number of ways you can solve your debt problems and links are provided below to find out more about them.
– What is a Debt Management Plan
Help! I need Debt Help now
If you would like to get help with your debts now, see the Get Debt Help section of this blog for a list of organisations who can help you with your debt problems. Good luck and if you have any questions, please ask.
