In the world we live in debt can seem like a necessary evil; you can’t live with it but you can’t live without it.
In fact, according to CNBC, the average American household has over $10,000 in credit card debt and that consumer debt is to reach an all-time high by the end of 2018.
If you fall into this category of having a credit card and other debts you may be feeling overwhelmed and that you don’t know what you can do to turn your mountain of debt into the small or non-existent molehill.
Here are five ways to deal with your current debt and get started on the road of getting out of it for good and only maintaining what you need rather than what you don’t.
Write it all down
If you really want to get rid of your debt for good it’s a good idea to make a list of all your current debt so you know exactly what you are dealing with.
Make sure to be real with yourself and write down every possible debt, from your car loans to credit cards or unpaid student loans and mortgage payments.
The good thing about writing down all of your debt is it could possibly help you to not feel as overwhelmed when you actually see the numbers in front of you, and then from this point, you will be able to create a plan of what you can do to tackle the debt.
Figure out what to tackle first
Now that you’ve written out all your debt down, find out which of your debts is hurting you the worst, maybe it’s the one with the highest interest rate or is the most overdue, etc.
You can also figure out if you want to start paying off your smallest debt first or tackle the one that is costing you the most money. Whichever one you decide to do first find out how you can pay it off and realistically how quick you can do it, and then once you have done that move on to the next one and so and so forth.
If you need to adjust the plan based on life circumstances then you can, and for the rest of the debts make sure you are setting things such as automatic payments to pay the minimum balances at least in the meantime while you put your efforts toward your main focus.
Know your rights and their rights
You have rights when it comes to debt collectors, but remember that the collectors have their rights too.
If you aren’t making payments and they begin to call you or you receive garnishments, you can understand what these companies have rights to by talking or visiting the websites of law firms such as www.magicvalleylaw.com.
You can also find out what they can’t do and how to avoid having to have them contact you in the future.
Talk to an expert
Sometimes with debt it may be best to talk to a professional, such as a debt consolidation specialist.
By talking with them you can find out your best options for paying off your debt and also get advice on things such as debt consolidation loans or if you need to file bankruptcy.
These experts can also help you to come up with the best plan of attack and help you on the path to being debt free.
Start to save
Even though it may feel like all your money and energy needs to go toward paying off your debt, it’s still a good idea to start saving as much as possible.
Create a budget that includes all you need to tackle your debt, but also include what you can put aside to save for emergencies, even if it is a small amount at first.