Getting out of debt is something that we want to do, but unfortunately most of us struggle once some debt has built up to pay it off completely.
This second page about debt will advise how best to cope with debt once it gets out of hand.
If you have tried absolutely everything to reduce your debt but simply cannot meet the monthly repayments no matter what you do, then you are in a debt crisis and need some serious help.
If you want to have a debt free living in the future, dealing with your crises NOW is an absolute must.
Don't panic frugal living can help turn your finances around, just stay calm and take action now.
Step 1. Tell your family about your problem, don't try and hide it. A problem shared is a problem halved, this is certainly true and even if they cannot help you financially they will be able to give you personal support.
Step 2. Talk to a free debt counsellor service (Never pay for advice like this), like The Consumer Credit Counselling Service in the UK, and the US trustee program in the USA will find you free counsellors in your area.
What not to do
1. Never use companies promising to reduce your monthly debt bills each month by lumping all your debts into one.
Their interest rates are very high and your debt will be extended over a far longer period of time, costing you much, much more and reducing your chances of getting out of debt.
2. Don't take out other loans to pay off debt if they will cost you more in the long run than the original debt.
Especially stay clear of loan sharks, cheque cashing agencies or any one offering to look after your debt for you.
3. Don't file for bankruptcy if at all possible. Bankruptcy should be looked upon as definitely the last resort; it is not the quick solution so many people think it is.
This is what filing for bankruptcy really means:
As you can see it is definitely not an easy solution, there are so many ways of getting out of debt or reducing your bills that it should never be necessary to declare bankruptcy (unless you're a multi national company of course).
Instead work towards a debt free living, small steps forward are better than standing still, no matter how long it takes, you could and can realise a debt free future.
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