Are you so stressed out by your debt that it's now affecting your daily life? If so, perhaps it's time for you to seek help from credit counseling, debt consolidation or debt management plan to get you out of debt before filing for bankruptcy.
Okay, stop panicking.
Take a deep breath, take a step back and try to look at things with a clear head.
Go through all your statements and add up all the outstanding debt.
Is your debt so unmanageable that it's not possible to make another month's minimum payments? If your answer is yes, then you should consider a debt consolidation loan.
A debt consolidation loan works to help you get out of debt by consolidating all your multiple debts with various creditors into one monthly payment that you can afford; this means they are combined into one easy-to-manage loan.
It's a fair amount of cash for the monthly payment so that you can begin budgeting and spending properly, and pay off your debt sooner than you thought possible.
With extra money in hand, you should start saving.
Save 5% to 10% of your income as emergency fund.
Want to buy new things you want or need? Well, save first and buy them with cash.
You must always bear in mind that you were wound up in a debt hole because of the immediate gratification of making purchases using credit cards.
If your desire to make the purchase is so strong, then rationalize the purchase and try to take into consideration if the purchase is a rational one or one based on emotion.
If it is based on emotion, think about how purchasing this item will make you feel, then imagine the stress of being in debt and harassed by incessant calls and letters made by your creditors.
Your journey to become debt free will be under way if you stick to making payment on time, saving money and buying everything with cash with care.