4 Simple Ways To Get Out Of Debt

When you’ve got a lot of debt, it could feel like there’s no viable way out. The truth is, the world just started to recover from a devastating financial recession a couple of years ago. So if you’re in this position, you’re not alone. Many hard working consumers were laid off from work. Tons of people, struggling to make ends meet used credit cards and took out loans to cover their expenses while they looked for work that was seemingly impossible to find. But now, more and more people are getting back on solid ground, only to be reminded of their debts every single day. Here are 3 ways that you can fight back, and finally dig your way out of debt!

Option #1: Good Budgeting

I’ve worked with a lot of clients on debt relief. One of the first things I noticed in the industry is that most of the problems can be fixed with better budgeting. Although it may take a little gumption at first to get things all set up, when you get a proper budget together, it will be much easier to manage your money, and finally pay off your debts.

One of the best ways to put a budget together is through the use of a spreadsheet. On your spreadsheet, you want to include all sources of income as well as all of your necessary expenses. Your expenses should include everything from rent to food, gas, daycare, and everything in between. Subtract your total expenses from your total income, now you’ve got your extra funds amount. Allocate as much money as you can to making extra payments on your debts while still holding a little back for monthly entertainment purposes.

Option #2: Sell Your Structured Settlement

If you’ve got a structured settlement, you may be in a very good position for paying your debt off. Although receiving small payments every 2 weeks or every month is enjoyable, you’ve got the option to get paid in one big lump sum.

With one big payment, you may be able to pay off your debts, and put money in savings for the future. Although this isn’t a perfect option for everyone, for some, it’s a great way to not only pay off debts, but to get ahead once again!

Option #3: Sign Up For Credit Card Hardship Programs

Because the worldwide financial recession caused so many people to fall into debt, many lenders started opening up hardship departments within their branches. These are departments designed to help you liquidate your balance as quickly as possible without spreading your budget too thin.

Those who qualify for financial hardship programs are generally given one of two options - either a long term financial hardship plan, or a short term financial hardship plan. In long term programs, interest rates are reduced and consumers are placed on a fixed monthly payment amount. This allows them to pay off their balances quickly without adding too much interest if any at all into the mix.

Final Thoughts

If you’re in a position of overwhelming debt, it’s important to realize that you’re not trapped. You’ve got tons of options! As a matter of fact, the 3 mentioned above are just the tip of the iceberg. All it takes is doing a little research and finding an option that’s right for you!