When Debt Is Too Much: 4 Strategies and Tips

Nowadays it’s easy to get caught in too many payments for various debts, loans, mortgages and more. This becomes even more complex when you have some emergencies that force you to use more money, until the time when you can no longer cope with the debts.

What to do at this point?

These are some strategies you want to consider. Among these tips, there is also credit card consolidation.


1. Spend Less

Anyone would like to have more money to spend.

Many people get into debt because they usually spend more than they can afford, buying what they want, when they want.

So, if you are not a millionaire, don’t just purchase anything you want. Instead, don’t waste all the money of your paycheck and use part of it to repay your debt.

Once you will be able to settle your debt, you’ll have money available to spend on your wishes or better, to invest.

Another great strategy to spend less is to pay with cash, instead of a credit card. There are some studies that report people spend much more at vending machines when they use a credit card.

So, until you have not settled your debt, be sure to hide your credit cards and simply use cash.


2. Pay First Your Most Expensive Debt

This is probably the smartest strategy for eliminating your debt. Be sure to make minimum payments on all of your debts and credit cards except for one. Select the debt that has the most interest and focus all your future payments to get off this first.

Once your most expensive debt is paid, focus on the next most expensive one. If you continue with this method, you will be able to get off all your debts soon. You will be also encouraged by tracking your progress!


3. Get a Second Income

If you are able to produce a second income, making consistently more money than you normally do with your job, you will have more cash available to pay off your debt.

There are many opportunities with the internet, like:


4. Consider Debt Settlement or Debt Consolidation

These are 2 different solutions.

With debt settlement, companies negotiate lower interest rates and other fees from your creditors. You then make a unique payment to the debt agency which then pays all your creditors until the debts are paid off.

In the alternative, you can consider debt consolidation. Check with your bank or credit union if they may help you consolidate all of your debts into one loan with one payment at a lower interest rate. This can really help you in settling your debt.

Just remember, getting a debt consolidation loan will only help you if you create a budget to save money each month.


If you are seriously in debt, you may consider talking with a professional who can help you find the best solution for your situation.

Remember, saving something is the first step to repaying your debt. And you should do it as soon as possible!


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