You have heard so many times that you need to engage in aggressive debt elimination that it is virtually ingrained in your mind – so how do you do it? That would be the million dollar question. For most people it is an ‘easier said than done’ situation and they may feel helpless or overwhelmed in their current situation. If you are one of these people, hang in there because getting out of debt really is possible, but committing yourself to the process is mandatory.
The initial step toward any form of recovery is to admit you have a problem. Abuse of credit cards or loans, or any form of being in debt is in fact a problem that is similar to alcohol or drug abuse. Treating it as such helps you to understand the severity of the situation and hopefully drive you to search for a solution.
Once you realize and admit you have a problem, taking stock of the situation and categorizing everything is necessary to clarify what needs to be done. Prioritize the proper steps to achieve a debt free standing and know which debts need to be paid off first and which ones can wait.
After this aggressive strategy is planned, make a decision to maintain timely payments. These payments should include extra over the minimum payment, no matter how small. This not only helps to set a habit of paying as much as possible to pay it in full, but also aids in lowering the debt by paying on the principal.
As far as finding solutions in large amounts, there are several ways to achieve this, but each one must be considered fully before making a decision. If you own your home, you may want to consider a home equity loan to pay off as much of the debt as possible. Keep in mind whether this would actually lower the amount of debt and mainly the interest rates.
If family is an option, perhaps you could request a loan from them, to be repaid as per specified. Because it is family does not make it a ‘long term’ loan, nor does it make it a ‘pay as you get the urge’ type of loan. It should be treated as any type of formal loan from a bank or other lending institution.
Once you have set up a steady routine of regular, timely payments and you feel you can safely carry a credit card, try to keep it to only one or two cards. These should be used only in an emergency and the balance should be paid in full at the end of each billing period to keep from raising the debt amount. If you are able to survive without the use of any credit cards, than do so and be proud of yourself for breaking a bad habit.
As with any type of addiction or bad habit, seek help. Either professional counseling or the help and support of family or trustworthy friends. This is not something you need to suffer through alone, and the relief of help from a good support group or an understanding family will far outweigh the embarrassment or discomfort of admitting to this type of problem. Your pride should not be a determining factor in stabilizing your future.
