DEBT is STRESS! DEBT is like having a CHAIN and a BALL attached to your ankle. DEBT can be oppressive. Debt has brought down families, marriages, homes, businesses, and even entire families. It has led to depression, hopelessness, and even suicide. This is the bad news, but it’s not the end of the story. You already know that so let’s get to the bottom of the matter. Now it’s time for your personal HOW TO GET OUT OF DEBT plan!

Let’s start by briefly examining the various paths that can be used to get out debt. You may be familiar with some of these, while others might be new or unfamiliar to you.

1. Reduce expenses

2. Increase your income

3. Limitations on Debt

4. Bankruptcy

5. Debt Consolidation/Mortgage Refinance

6. Credit Counseling/Debt Management

7. Settlement of Debt

8. Do it Yourself Debt Settlement

How to Get Out Of Debt Path #1 – Reduce Your Expenses

In some cases, a person only needs to reduce their expenses and save money to pay down debts. This starts with examining your ability to live without it and still be able to live. This could mean downsizing your home, car, or apt. You may also have to temporarily cut back on some of the things you love in order to achieve your goal. But it is well worth it!

Step #2: Increase your Income to Get out of Debt

There are many ways to increase your income. Your imagination is the only limit. You have the option to ask for a raise, take on a part-time job, start a business, or go online. There are many opportunities for creative thinkers. Get your thinking cap on, and get to work.

How to Get Out Of Debt Path #3 – Debt Statutes of Limitations

Some people find themselves in financial turmoil and the Statutes of Limitations seems to be their only option. Most debts have a statute that limits their liability. This could be an option if you have debts that hang over you and are past or at the statute of limitations.

How to Get Out Of Debt #4 – File Bankruptcy

You should never consider filing bankruptcy. You don’t have to file bankruptcy unless you face dire legal consequences due to debts. Yes, debt collectors can make it difficult to bear the weight of their demands at times. However, it is possible to avoid being sued if you take action and address your debt.

How To Get Out of Debt Path #5 – Debt Consolidation/Mortgage Refinance

You won’t get out of debt by following this path. It will only lower your monthly payment and interest rates. This is basically a way to move debt around at lower rates. You can use the money you save to pay down your debts faster. For those who stick with the plan, it works like a charm.

How to Get Out Of Debt #6 – Debt Management/Credit counseling

Renegotiating debts is the essence of credit counseling and debt management programs. These plans stop debt collection and allow debtors to enter into more affordable payment plans. This is a consolidation plan that does not require a loan. This program is intended for people who make minimum payments. It would reduce their monthly payment and free up money. There is one caveat. This service is often expensive unless you sign up for Non Profit Consumer Credit Counseling.

How to Get Out Of Debt Path #7 Debt Settlement

The best way to get out of debt is to hire a debt negotiator who will go into your home and negotiate a very low interest rate for you to settle your debts. Most creditors will accept the offer as it is better than nothing, and likely better than what they would get if they filed Chapter 13 bankruptcy. There is one caveat. The fees for your debts are high, and you may get significant discounts. Some cases can even reach 20%

How to Get Out Of Debt #8 – Do it Yourself Debt Settlement

This is the best way to get out of debt. You become your own negotiator, which is a great benefit. You can do it all, but you don’t need to. Some firms offer coaching along with their debt settlement software. This option can save thousands of dollars in fees and help people negotiate down their debts.

What next? Consider each option in relation to your financial situation and current financial status. Make a decision and stick with it. You will need to do a thorough analysis of each option before moving forward. It is important to have a plan and then follow it through!