Facing insurmountable debt can feel like a lonely place. However, the reality is that you’re not alone. Millions of Americans are currently struggling financially through no fault of their own. Medical bills, rising rent prices and natural disasters are just some of the reasons people are falling into debt.
Thankfully, there are debt relief strategies out there. Taking proactive measures is a huge part of addressing financial difficulties. Here are a few things to consider.
Address high-interest debts first
Some of the debt you owe may be building up high interest. If you can find a way to address this first then it may help. As you tackle high-interest debts, the rates should come down and you’ll be able to focus on other priority debts.
Focus on the smallest balances
Another technique that can work is to address the smallest balances first. Sometimes, having multiple smaller balances can feel overwhelming. By addressing each small debt one at a time, you may be able to clear them. The total amount of debt may not be as much as you first thought.
In some cases, you may be able to negotiate payment plans with creditors. These can be based on your income, expenditure and affordability. The debts may end up taking longer to clear, but at least you’ll be able to afford the payments.
Finally, you may wish to consider bankruptcy if your debts are simply unaffordable. Bankruptcy can give you some breathing space to get your finances back on track. It’s a big decision though, so make sure you have all the relevant legal information before going ahead.