Debt doesn't have to rule you

Debt doesn't have to rule you

It may take time, but you can conquer debt.

There are many people out there whom are buried in debt and just can't seem to get out of it. Unless you are so completely overwhelmed with debt that you choose bankruptcy, there is always a way out. It may take time, but if you try and stick to it, then the debt will melt away.

The first step in deciding to end your debt is to find out exactly how much debt you owe. Your credit report is an excellent tool to assess this information because anyone that wants their money will likely put the info on your credit report.

Once you know how much you owe and to who, then you need to know exactly how much money is coming in. Take you revenues and add them up for the month. This includes all wages, bonuses, freelance money, etc. If it isn't regular steady money, then estimate it to the best of your ability.

Perhaps, the most important step to make a list of your total expenses for the month. This has to be realistic. Everything from your mortgage and car payment to your weekly trip to the frozen yogurt stand. Take all the necessary expenses, the ones that you need every month such as utilities, payments etc. and add them up. This is the bare minimum you need to pay. This does not include credit cards or other monetary loans.

You need to use the information to create a budget and set aside a specific amount for debt relief. Contact the creditors and work with them to create a plan. If they aren't willing to negotiate or if you still can't get out of debt, then bankruptcy may be your only option.