How to Dig Yourself Out of a Debt Hole
You’ve made a couple of bad decisions in your early adult life. You started earning a lot more money that you side hustles as a teen – unfortunately, you also ended up spending so much more than your new income. Here you are with a shiny car, a high-interest mortgage, and credit cards that are all maxed out. You’re not alone. The average US household has $132,158 in debt. Of course, not all debts are bad, but because of how you handled your money and borrowing, you now have dug a deep debt hole for yourself with bad credit to boot.
Don’t worry. It’s a common situation, one that can be remedied if you are determined and have the patience to work your way out of it.
Here are a few things you need to strongly consider right now:
This is the golden rule of saving and getting out of debt. Write down all your standard expenses, track your monthly spending, and cut down on all the items that you can live without. Sure, this will mean that you will have to live lean. However, you can’t really afford to use up all your income and not pay debts at all. Debts are not free money.
You probably think you’re already at your limit. Maybe so. But do you figure in how much stress your ballooning debt is costing you? While you’re pulling expenses down, look for ways to augment your current income. Maybe consider a side hustle like mowing lawns, walking dogs, or babysitting. There are also ways to earn money online. Of course, when you do find a way to earn more, do not spend more! Use that to further chip away at your debt.<
Manage your debts
First of all, do everything you can to pay off your debts with the highest interest rates. Loan sharks, personal loans, and group lending are all notorious for 10%+ interest rates. Talk to a debt management professional. Bad credit refinance options in Utah are worth looking into. You need all the help you can get when it comes to reducing your debt right now. Managing them and choosing which ones you can arrange around and refinance will save you a lot of time and stress, advised an expert from American Loans.
Getting out of debt is one of the best things you can do for yourself. Otherwise, you will always be in the red and have financial uncertainty written all over your future. Act on it now.