Do you have so much debt that you have to borrow to pay current bills? Do you regularly pay your bills late? Do you need to use credit to buy things like groceries? Are you being contacted by bill collectors?
Here are some steps you can take right now to improve your situation.
- Stop spending money you don’t have. If you keep spending, you’ll dig yourself into a deeper hole. Think about your budget. If you don’t have one, now’s the time to make one.
- You don’t have to do it by yourself. If you’re behind in your payments and can’t pay your current bills, talk to your bank or financial advisor. They can help you to contact your creditors, explain your situation, and work out new arrangements. You should also talk to your family - if everyone in the household is committed to reducing debt, you'll get there that much faster.
- Make the minimum payments, on time. Make the minimum payments on time, if you can’t pay the balance in full.
- Get help repaying your debt. Non-profit debt counseling agencies can really help you get back on track. Don’t use agencies that charge for their services and spend a lot of money on advertising. They usually charge very high fees.