Drowning in Debt? Here’s What You Can Do

Drowning in Debt? Here’s What You Can Do

There are reasons why people need to borrow money in order to fulfill a financial need and acquiring debts is very common in any society. Debts come in different forms or channels and it could be from salary loan, home mortgage, car loan, business loan, credit card and so on. Having loans can be a saving grace for some, but for others who are faced with debts piling-up, the situation will be stressful as the pressure builds up to adhere to a financial commitment.

If you feel that you can no longer handle your debts then find some consolation in knowing that there about 78% of Americans who are living from paycheck to paycheck. The burden of having too much debt can be overwhelming but there are ways to resolve this matter and steadily go back to where you will regain your financial freedom.

List down and organize your debts. Organize your debts according to importance and list it down. Mortgages usually end up on top of the list while credit card bills will fall under. It is important that you analyze each debt with emphasis on the severity of each case in terms of payment terms, interest and extra charges.

Ask for options from lenders and see what they can offer you. Now that you have a list and know what to prioritize, you can make an appointment with your lenders and ask about other options that they could provide you. It could be a loan restructure or another set of payment term which could be favorable to you.

Some lenders will offer debt consolidation, check here to know more about it.

Create a budget plan. This is the time to practice discipline when it comes to budgeting. Everything should be taken into account with no room for extra expenditures. Create a weekly budget plan for your meals and groceries. Make a plan for your monthly bills and payments too. Practice buying stuff that are cheaper or offer discount for extra savings. Stick to your budget and device a way to spend less.

Go for credit counselling. Search for a reputable non-profit credit counselor in your area which can guide you into planning for consolidate payments with much lower interest rates. This is the best option when dealing with additional debts aside from existing ones. Just make sure that the credit counselor is properly accredited with National Foundation for Credit Counseling.


Almost all people on earth have a debt, even those in power and the affluent ones. Debt is not really a bad thing if you’d only learn to manage it very carefully. It can actually help you live a comfortable life if you’d only be responsible enough for it. But of course, it is still best and you’d be better off in life without a debt. If ever you are in that situation where you are already buried in debts left and right, better consult experts and professional or talk to your lender before everything becomes too late; and next time, make that experience a life lesson. Accept that sometimes, life teaches us lessons the hard way.