Drowning in Debt? How to Get Back on Track
When you are drowning in debt, it often feels like it is the end of the world. You are not sleeping, and you are worried if your next salary will be enough to provide for your family.
Contact your creditors.
If you cannot make payments, contact your creditors at once. If you have paid your bills promptly in the past, they may be willing to work with you. Do not wait till your account has been sent to a collection agency. At that point, the creditor has given up on you.
Do not take on any new debt.
Taking on debt robs you and your family of a secure financial future. Your choices right now can impact future generations for your family tree.
Allocate more money to paying off debt.
Identify your problem spending habits and then make adjustments to where your money is going. You can allocate that room in your budget toward paying off your debt.
Increase your income
Figure out how you can increase your income. Take a second job or pursue a side hustle that will give you the extra income you need to throw at your debt. Whether that is mowing lawns, working at a local coffee shop or a ride-hailing service, you have to bring in more cash.