How to Get Back Up When Drowning in Debt

It can be difficult for you to deal with debt. If you owe thousands of dollars, then you may feel as though you are never going to get out of it. However, there are some things that you can do to get back on your feet.

Set a Budget

The first thing that you will need to do is do if you are struggling with debt is to set a budget. You need to know where your money is going. After you have budged for food, utilities, transportation, and shelter, you may find that you have extra money left over. You should put this extra money towards paying off your debt.

Consider Debt Consolidation

Debt consolidation is the process of combining multiple debts into one. People typically consolidate debts by taking out a loan and paying off multiple debts. There are several ways that you can benefit from consolidating your debt. 

You will be able to get out of debt faster. You will only have to make one payment each month. Additionally, you will be able to save money on interest.

Increase Your Income

You may not be bringing in enough money to pay off your debt. That is why you should look for ways to increase your income. You can get a second job or pick up a side hustle. There are several ways that you can make extra money. 

This includes driving for Uber, working at a coffee shop, and mowing lawns. Even if you are only able to bring in a few extra hundred dollars a month, you can still put this towards paying off your debt.

File for Bankruptcy

Bankruptcy can help you get rid of all or part of your debt. However, it should be the last option because it can ruin your credit for a long time. You can choose chapter 7 or chapter 13 bankruptcy. 

Chapter 7 bankruptcy will allow you to wipe out your debt in just a few months. Chapter 13 bankruptcy allows you to repay your debts within three to five years. If you want to file for bankruptcy, then you should contact a debt relief attorney for more information.

It is possible for you to get out of debt. You can set a budget or consolidate your debt. You can also find ways to increase your income. Additionally, you can file for bankruptcy.

How to Cope with Debt-Related Stress

If you are struggling with an unmanageable amount of debt, you may feel guilty, anxious, or depressed. While being in a high amount of debt is never ideal, you are not alone, and there are ways to deal with your situation constructively.

Seek out Resources

There are many resources available for dealing with your debt. Debt management companies, like Rescue One Financial, can help you by connecting you with a counselor and creating a debt management plan. As long as you have discipline and stick to the plan, you will eventually become debt-free.

Confide in Loved Ones

Money is often considered a taboo topic in modern society, but that should not stop you from reaching out to close friends and family members in regards to your situation. Being able to speak with someone you trust should help you to work through any feelings of guilt or shame and feel inspired to take action. Your friends and family may even be able to recommend ways to earn extra cash.

See a Therapist

If you have reached out to your loved ones and begun a plan to pay off your debt but are still struggling with persistent negative feelings, you may wish to consider reaching out to a trained mental health professional. 

You are not your debt, and you should not allow your current financial situation to have a detrimental effect on your overall self-esteem. A therapist will be able to help you work through your feelings and provide valuable coping exercises.

By following these steps, you should be able to improve your emotional well-being while starting down the road to becoming debt-free. Even though you are most likely cutting out discretionary expenses in order to pay off your debt, don't be afraid to leave some room for occasional indulgences. 

There is no shame in allowing for an occasional night at the movies or new pair of shoes for the sake of your sanity and sense of self-worth.