Planning for a Bright, Financial Future

Debt is a word that many Americans are all too familiar with. Perhaps that is because millions of Americans suffer from debt. While the majority of households struggled with debt over the last several years, the COVID-19 pandemic created such an economic shockwave that US households reached $14.6 trillion in debt. If you are among the 340 million people struggling with debt, keep reading to find out how to get out of debt.

1. Contact Creditors

Commonly when a person is in debt, they avoid answering the phone when it rings. It can feel like creditors are hounding you day in and day out as they chase down the amount you owe. That is why it is no surprise that debt has a psychological cost as well as a financial one. Among people without debt, 83% say they are satisfied with their lives compared to 70% who struggle with debt.

Rather than avoiding the phone when it rings, answer it and make it a point to speak to the creditors. Many creditors understand the hardships that individuals and families face. You can often convince creditors to lower your monthly payments, reduce your interest rates, or even accept a one-time payment for half the cost of your debt.

2. Contact a Credit Counselor

Credit counseling agencies exist for the sole purpose of helping people who are in debt deal with the utter confusion and trauma of it all. They can often offer a listening ear and provide helpful advice that best suits your situation. In many cases, they can also speak to creditors on your behalf, which is especially helpful if your debt is causing you anxiety.

A credit counselor can often work with creditors to find you the best solution that matches your monthly budget. They can also offer you advice to help you stay out of debt once you are debt-free. It is highly recommended that you contact a credit counselor today to find out how they can assist you.

3. Analyze Your Budget 

One of the most important steps you can take to get out of debt is to analyze your monthly budget. Once you have your budget figured out, determine how much you can set aside to pay off your debt each month. If necessary, try to consolidate your debt into one low monthly payment with the help of a debt consolidation specialist. Paying multiple payments can be antagonizing when you are already struggling to pay the bills. Having one payment to make each month can help you breathe a little easier.

Debt can often cause feelings of shame, yet it is something that millions of American deal with daily. Fortunately, you can become debt-free by following a few simple steps.