You’ve managed to get yourself into a financial hole, and you don’t know how to dig yourself out. You owe money in various ways, and you’ve got bills coming up that you’re almost certain you won’t be able to pay. So what’s the solution? It’s not always completely hopeless. There are things that you can do to make debt more manageable and to get your finances back on track. It’s time to stop panicking and take action. Here are some of the things that you should be doing if you want to climb out of that financial hole.
This is a contributed post and do not necessarily reflect the opinions of Meet The Harris Family.
Negotiate with Debtors
First things first, you want to try and hold off anyone that you owe money to. This is often a lot easier than you might think. It’s better to try and discuss your situation than to bury your head in the sand while they come after you. You can often work out a payment plan or even negotiate your debt down. For example, many people are able to reduce their medical debt through negotiations. Your lenders simply want to be paid, and sometimes that means they will allow you to reduce your debt or make your payments more manageable.
Collect Any Money That You’re Owed
Are you owed any money? If you’re struggling financially, it’s not the time to be nice and to let things slide. You might have friends or family members who have borrowed money from you and not paid it back. There could even be someone who is responsible for paying some of your debts. A personal injury attorney can let you know whether you can expect someone else to cover your medical costs. Perhaps it was someone else’s fault that you had an accident, but now you’re saddled with the bills. It could be up to a company or an individual to pay your expenses.
Sell or Rent Things You Own
It’s not ideal, but if your debts aren’t particularly large, selling some of your possessions can be sensible. It will help you if you’re having a particularly hard month and just need to deal with a few extra expenses so that you can get back on track. However, it’s not a long-term solution that you can keep using. Another possibility is that you could rent out something that you own. It could be your lawnmower, bicycle, tool box or anything else that other people might want to borrow.
Consolidate Your Debts
If you have lots of different debts, you could find that consolidating them into one debt makes this easier to manage. You’ll have one monthly payment, instead of several of them. One way to do this is to approach a family member or friend who trusts you and can lend you some money. You can still draw up a payment plan and even sign a contract. If you want a more official solution, you can find debt consolidation companies that will help you out. You can also get credit cards that are ideal for consolidating your debts.
There’s no need to drown in debt. If you’re struggling, there are solutions to help. Expert assistance is available too if you need it.
