How to Reduce Your Debt Burdens

If you really think about it regardless of what's on our balance sheet and credit reports, to some extent, we are all in debt. In the United States—due to their share of the US national debt—every baby born today comes into the world with $60,000 in debt. In many ways, we all carry the baggage of that national debt. Whether it be via the cost of public medical expenses or a system running on borrowed funds. This is our "default". But it doesn't have to be. That "default" mindset is one that has gotten us in trouble and has made us complacent. We are all capable of change and bettering ourselves!

Apart from our societal debts, there are a variety of ways in which we may end up accumulating debt throughout the course of our lives. Some people will become overburdened with debt due to their student loans, some may fall into debt later once they buy their first house or car, some get into divorce. In some cases, it could be a combination of multiple things like credit card debt or personal loan debt. One things for sure, it's usually not something that we plan for and not something we ever hope to happen! However, when it happens we need to adapt the best we can.

What Should You Do If You Carry Debt?

If you currently carry debt, regardless of the type, then you should begin planning out how you will tackle it—in order to reduce the burden of your debt early on. It’s vital to do so in the early stages, while your debt is still manageable. It might seem a little preemptive to worry about it so early on but you need to remember that debt can snowball and become much more unmanageable as time passes and interest accumulates. And once debt starts spiraling out of control it's becomes very difficult to get a handle on. Time and time again, history has shown how crippling debt can bring economies, businesses and entire countries down to their knees. This is why caution should always be advised before borrowing money or taking on more debt. This is a key part of the reason why it’s so important to prepare yourself early on.

If we are talking specifically about high interest credit card debt or personal loan debt (i.e.: bad debt), we want to make sure that we stop it from becoming a serious problem as the effect of compounding interest could have you paying back more than 3-5 times the amount you initially borrowed. You can start preparing by managing your financial statements and outlining a clear path to financial success—as determined by your goals. If it’s not something you feel you can tackle on your own then it may be best to consider enrolling in a debt relief program. Our program is highly reputable and very positively reviewed but feel free to do your own research as well. Otherwise there are numerous options and paths you can take to help you get back on the right track.

Budgeting

The first step you must take when dealing with paying off debt, is clearly mapping out your finances and then setting up a realistic monthly budget. It is best to separate your finances into two categories. One category should be life necessities (utilities and electricity bills, groceries, insurance, internet, rent/mortgage and so on) and the other should be disposable expenses and luxury expenses (entertainment, going out to eat, movies, clothing, etc.). You only need to include the absolute bare minimum here, and if you have any leftover income you should dedicate those to an emergency savings fund. This should not include luxuries, and if you are already trying to sneak those in, then you are not taking this seriously enough. By having all of your finances mapped out, you will have a basic idea of how much money you will have leftover at the end of each month, and whether or not that left-over amount of money will suffice to begin more aggressively paying off your debts.

This is essentially the starting point for your creating your own path out of debt with some simple financial analysis. Once you have your finances sorted—you can then begin to evaluate whether or not you can actually afford to deal with the amount of debt you carry and how much you can pay towards it's elimination.

If you are looking for debt relief, then you have a number of options that you can opt for, which include:

• Debt settlement
• Debt management
• Debt consolidation
• Bankruptcy

If you are looking for a debt relief program, then you need to consider the that there are some bad actors in the debt relief industry who will not always have your best interests in mind. You want to make sure that you do your research and go for a reliable debt relief program because there have been some incidences where debt relief programs have gotten people into more financial trouble then when they initially began the process of debt relief. A few takeaways to think about when evaluating debt relief programs and their possible implications:

1. Are there any requirements and credentials you must have in order to be eligible for the program?
2. Are there any associated tax implications with doing a program?
3. Who are the creditors in these situations and is the company you want to work with transparent in the approach to get you of debt?
4. Are there any fees that you'll be required to pay during the course of the program?
5. Are all fees including in the program and are there any hidden fees?
6. Do you feel comfortable with everything your doing?

If you are able to find a good debt relief program that you can afford, you should definitely consider it. This way you won't need to file for bankruptcy (since that has its own set of negative implications) and you can look to resolve your debts in a less stressful way.

In conclusion, although debt isn't ideal, it's sometimes a tool we need to utilize. As long as it’s handled correctly, borrowing money can occasionally help you move forward in life and achieve a lot of great things. Whether it’s an education, a mortgage for a home, funding for a future business venture or anything for that matter, as long as you go about it wisely and do your homework there is some benefit to be had. Our company is very anti-debt, but we understand that if the need arises, sometimes borrowing money is almost unavoidable. It's become a part of modern society. Taking on debt can be a necessary part of helping you achieve your goals, it's never something we want to do but unfortunately something we are forced to do. When we are stuck in between a rock and a hard place, debt can sometimes be the option we end up choosing.