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Struggling With Debt? Here's How to Turn it All Around

Struggling with debt is a horrible feeling and one that can not only lead to a great amount of stress, but which can also cause you to feel guilty and ashamed. No one likes admitting that they made a mistake, or that they're struggling, but simply ignoring debt won't make it go away.

To change your situation requires a change in thinking, and that means making the conscious decision to turn everything around starting today. There are plenty of services out there to help you on your way and any number of strategies you can use to start paying off the amount you're owed. All you need is the right attitude, and then you can begin to take the following steps...

Tell People

If you have been keeping the fact that you're in debt to yourself, then you will be depriving your friends and family of the chance to help and support you. Telling people about your situation can also act as a great motivator that will help to encourage you to get out of debt and start showing that you can do better. To prove to yourself and to other that you're really struggling, start by coming clean to your loved ones today.

Tell Your Lenders

You've told your friends and family then, so what next? Well they aren't the only people with a right to know about your situation - equally entitled are your banks and lenders. By speaking with them and discussing your circumstances you will find that they are likely to give you more leeway and may even help you to restructure some of your debts so that you can pay them back in smaller installments or over a more extended and convenient period. It's in their best interests that you are able to pay off your loans, so discuss with them how they can make that easier.

Consolidate Your Loans

Another useful strategy is to consolidate your loans, which simply means taking out one big loan in order to pay off all your smaller ones. Often this will mean you have less to pay in total if you can find a loan with a lower interest rate than the average for your other loans. More importantly though, it will also mean that you only have one loan to pay off rather than several which will in turn make it much easier to organise and to stay on top of.

Set Up a Budget

Now you know precisely what you need to pay and it's all relatively simple again, you need a plan of action. Devise yourself a budget that will set aside money each month to pay off your debts while at the same time ensuring you can still afford your living costs and have just a little money to yourself. If you stick to this budget, and there are no unwanted surprises (it's worth saving some cash for this sort of situation too), then you should be able to in fact predict the precise day on which you will once again be debt free.

by Benson Mortgage
in Mortgage