If you are dealing with a large amount of debt, you’re not alone. While it may seem difficult or overwhelming to have bill after bill arriving at your doorstep, there are tactics that you can use to overcome your debt and start living life on your terms.
Many single mothers struggle with debt, as this graphic from CreditGuard depicts. No matter what your situation, these five tactics can help you turn the tide and get out ahead of your debt.
1) Talk to Your Creditors
It’s safe to say that your creditors would rather get some of your money than none of your money. If you are having trouble making your minimum payments each month, ask for more time or ask for a new payment plan that lowers your payment. Depending on your current financial situation, your creditors may be open to modifying your loan or even forgiving some of the balance. Though it may be intimidating, it never hurts to ask.
2) Seek Help from a Third-Party
Talking to a credit counseling company makes it easier to pay off your debt. When you work with a credit counseling agency, they automatically put an end to those harassing creditor calls. Not having to deal with obtrusive phone calls or letters from debt collectors can give you the breathing room you need to come up with a payment plan that you can afford.
3) Make Extra Payments
Whenever you have a few extra dollars in the bank, you should attempt to make an extra payment on your debt. The faster you reduce your debt balance, the less interest you’ll have to pay. Getting a leg-up on your debt also gives you some flexibility if you ever have trouble making payments in the future.
4) Create Some Extra Income
It may be possible to sell assets in an effort to rid yourself of any outstanding loans or debts you may have. Do you have a lot of old movies or CDs collecting dust? Why not sell them and make a little extra cash. Sites like Decluttr will actually buy your old CDs, DVDs and games! Why not make a little extra storage space and make a few bucks in the process?
5) Use Credit Cards to Your Advantage
Although racking up debt with credit cards is easy, using them the right way can drastically improve your credit score. By limiting your credit card use to only smaller purchases you know you can immediately pay off, you’ll set your credit on the right path to future growth.
No matter what your financial background may be, it can be easy to find yourself in financial trouble. Job losses, unexpected medical bills, or student debt responsibilities can put even the most conscientious savers in a financial jam. With the right attitude, time, effort, and sticking to a game plan, overcoming your debt is certainly possible.