by Kate Flaxx

Created on: November 03, 2010

Going through your own paperwork that might be stacking up with bill after bill is a worrying situation for any person. Having to debt to pay in addition to having the costs of normal living expenses causes stress, tension and the inability to look past the debt situation.

Debt can be a looming thing, waiting to catch up and in most cases and when it arrives; it hovers and becomes a constant problem that seems to have no solution.

When debt takes control, it’s time something is done. You can get your life back to a normal and you can release the chain of debt. 

To get out of debt takes planning, communication, patience, dedication and time.  It can be done and if you want it, it will be. 

Try following four  tips below to break hold of debt;

Tip # 1 – Communicate

It is essential that you communicate regularly with the people / businesses you owe debt to.  If you speak to them, this in itself can provide some relief.  They wont disappear and they’re attempts to collect debt will eventually worsen. Try to maintain communication before they refer or sell your debt to a third party.

Tip # 2 – Budget

A budget is an essential part of debt resolution. With a budget you can allow for everyday expenses as well as form a plan to reduce your debt over time.  Allowing regular reduced payments to debt within your budget is still paying off the debt. 

With each payment you make, the debt is reducing and you’ll probably find your stress level lowering with every payment you make. 

Another suggestion for this is taking a realistic percentage of your income and applying that every week or every month to your debt, for example a person who receives $400.00 per week could apply 20% of that amount to just paying debt. In this example, $80.00 per week would be allocated to repayment of debt. If the person had more than one debt the percentage could be easily broken up. 

For example, paying 5% off four separate debts means $20.00 payments off each of the four debts per week.

If you planned in this manner, it would be easier to negotiate payments with your debtors (see tip # 1).

Tip # 3 – Do you have additional income?

Any additional income you receive should go toward your debt. Even if you only gain an extra $10.00 for the month, it’s better to pay it off your debt than put it anywhere else.

Tip # 4 – Monitor your spending

Buying new things is fun, but it’s great to have the attitude that those things are still going to be around when your debt is gone.  You have a goal which is to get out of debt. Keep this goal in mind when you impulse shop.  You can buy that new item later as a reward for your accomplishment of getting out of debt.

Having debt hanging above your head when you go to bed at night and when you wake up in the morning is extremely draining. But if you take the time out and plan, set yourself goals and budget your spending (right down to a pack of gum if you have to), and make regular contributions to your debt, you will get out of it.

Give it time and be patient.  If you follow the tips above, you’re debt will disappear.

Just to recap; communicate with debtors, set realistic amounts, put extra money into debt if you’re able and make your self a budget; the ultimate test of restraint with the result being a good nights sleep and a massive chain lifted from your body.

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