Are You a Consumer Struggling with Debt? Take Control with These Proven Strategies

If you are a consumer struggling with ongoing debt and a mountain of unpaid bills, please know there is hope. There are effective ways to tackle the stress of debt.

If you have decided that enough is enough and you are ready to be disciplined and become financially healthy, sometimes some simple and consistent strategies can make a big difference in your life.

If you’re ready to tackle the ongoing challenge of being a consumer struggling with debt, check out our simple and highly effective strategies for navigating your way into financial health.

Assess your full financial picture

If you are a consumer continually struggling with debt, it’s time to get serious. For many families, debt can spiral out of control so it’s important for you to be as honest with yourself as possible. The first step is getting all your financial information into one place. While it may be stressful, it’s time to list all your debts. From mortgage and rent payments to credit card debt to auto loans as well as outstanding bills to local businesses and service providers. It’s time to get everything down on paper in one place.

It’s also mission critical to be accurate with the amount of income for the household.

Know My Debt

The Know My Debt website is a valuable resource for anyone struggling financially. Especially if you have delinquent accounts out there. The Know My Debt website was created by ACA International with a goal of educating consumers on several areas of financial literacy. The website helps consumers understand their rights when it comes to debt collections, navigating the best way to handle your outstanding debts including how to communicate with a debt collector. And the website offers you valuable resources on planning your financial future as you pay off your debts. Find the website here: https://www.knowmydebt.com/

Other resources such as a financial therapist

There is a growing trend, and it’s called financial therapy. Financial therapists can be a trusted resource for helping you navigate the complexities of your relationship with money. Oftentimes, people who are struggling with a number of outstanding debts are also experiencing the emotional aspect of being in debt. Financial therapists are not only trained in financial decision making but also in helping people with their relationship with money. Some people find the combination extremely effective in going from being in debt to financial stability. You can find a financial therapist here: https://financialtherapyassociation.org/find-a-financial-therapist/

Create a simple budget

If you’re stressed out and dealing with debt, you’ll need to create a budget for you and the household. One way to do this is to be as simple as possible. Understanding your income and expenses is the best place to start. You must know what you have leftover at the end of the month after meeting financial obligations and trying to pay off debt. Being simple about the way you budget is a less intimidating way to get started digging out of debt.

Communicate with creditors and collection agencies

No one likes to discuss debt and why they haven’t paid a bill. However, while it might be uncomfortable at first, it is one of the most effective ways to navigate your way out of debt. So many consumers ignore collection calls, but it is an opportunity for you to start the process and pay off outstanding bills. It’s also a chance for you to tell your story and why you have accumulated the debt. Many businesses are willing to be flexible on payment terms, but you will not know that unless you speak with someone.

Repeat: having a conversation with a professional debt collector can be a positive experience!

Avoid accumulating any new debt

This may be obvious to some but being careful how you spend your money moving forward is absolutely critical. Because credit cards can have a higher interest rate than other expenses, you should stop using your credit cards unless absolutely necessary. If you’re unsure of yourself, there’s always an option to freeze credit cards. If you’re using other types of services in your home, try hard to pay those invoices immediately and do not let them pile up. And put off any larger purchases until you are financially healthy.

Consider a side hustle or a part time job

If you have considerable debt, you may want to consider increasing your income. And there is nothing wrong with creating a side hustle or even getting a part time job. Sometimes even a little extra income can make a big difference to your financial health. There are endless ways to create a side hustle and there’s always opportunities for part time jobs locally. Find something fun that does not stress you out. And make sure whatever you make in additional income goes towards paying off debt. If you have to, create a separate banking account for this money.