They say that there are many ways to solve a problem. Just like figuring the answer to a mathematical equation, you are not limited to one solution. Here are some of the many ways you can get yourself out of a seemingly bottomless pit of debt:
- Be responsible over our credit card debt. If you think your monthly income isn’t enough, then try applying for a part-time job. Although this would take a portion of time, effort and energy, it would be of great help in paying your debt. Reduce the number of credit cards you are using. It actually wouldn’t help; instead it would become more burdensome. Also don’t use your credit card for the time being. Take control of yourself and do not be involved in any more excessive and unnecessary expenditures.
- You may say to yourself, “I budget! I take care of the rent, electricity, water and etc.” Yes, we have to budget those with big amounts, but how about those that you spend everyday? It is also very important to take note on how much you spend on transportation services, eating out and even laundry cleaning. If you find it troublesome to budget your money, then seek help from your counselor. They are trained for this, and they know what you should do.
- Talk to your creditor about having a credit card debt settlement. Through this, there is a possibility of freezing interest costs and closing your account in exchange for a specific percentage of the balance in the coming months.
- Having a “one-pay plan” would allow you to purchase what you need at the same time, “whittle away at the balances you owe”. This will be helpful both to you, your credit counselor, and to the service (which will distribute the money). If this doesn’t work out, maybe it’s time to consider having a debt-consolidation loan.
- Come up with a debt management plan or a debt consolidation. A counsellor’s task is to manage your money according to your financial situation. They also coordinate with your creditors to lower down interest rate, take calls and reduce late charges or over-the-limit fees. A debt management plan is decided by you and your creditor. Following this plan, it could show you on how much you receive and how you will be able to pay your debt before deadline.
