Falling Into Debt

It seems that everything goes wrong at the same time. You spend a few extra dollars on something fun for yourself and your family, something you don’t normally do, and then wham! Your life begins to unravel. Your car needs brakes, your faucet starts to leak, and the kids’ school needs money for pictures. The good news is that you can recover from excessive debt by creating a budget and sticking to it.

Debt Cripples

Debt is not something that’s enjoyable. In fact, it can leave you feeling lost, depressed and anxious. This is especially true when others around you seem to have their lives in order. On top of that, the phone rings off the hook so you avoid it like the plague. And to compound the problem, your credit is poor, so you have limited resources at your disposal to help you climb out from under your debt. If this sounds familiar, don’t worry, there are ways to reduce your debt and re-establish a good credit score, faster than you may imagine.

Getting Help

Most people live in silence when they fall into debt. However, in order to get to an even level, you need some money to bring your bills up to date. You can seek the assistance of a family member and borrow just enough to cover the immediate pending expenses. If no one has money tucked away or they are unable to help you, you can take out a small personal installment loan from various online lenders who don’t use the same requirement criteria as a traditional bank to accept or deny an application. This makes it easier for you to acquire some cash to bring your bills current.

Improving Your Credit Score

A poor credit score affects you at every turn. It can prevent you from buying a home, renting an apartment, or buying a car. It can also cost you more for security deposits and even prevent you from getting things like insurance through premium companies. Working towards improving your score sooner rather than later is essential. The first order of business is to gather up your credit card statements to find out who’s charging you the highest interest rate. Once you find the one that costs the most, work to pay it off quickly by paying more than the minimum payment due. The rule of thumb for credit reporting agencies is that you must keep credit card balances below 50 percent, preferably at 30 percent of the available balance.

Cutting Back on Expenses

While in a state of recovery, it’s important to cut back on expenses where you can to free up money to pay down your debt. If you have cable television, reduce the service to a basic level for a few months. The same goes for your cell phone, take the service to the lowest level possible that won’t put you at risk for going over your allotted minutes. When you go food shopping, look for sales and always use coupons. At home, make a conscious effort to turn off the lights, use less water, raise the AC and lower the heat when you retire for the evening.

Falling into debt can cause you to feel depressed and lost. The good news is that you can turn your life around and break free from the piles of debt

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