Debt seems inescapable if you live in the U.S. today. From student loans to mortgages, the common consumer is likely to take on debt at some point in their life. If you are facing debt that seems insurmountable at this time, there are actually ways you can tackle it, even if it feels slowly over time. These tips will help you to take on debt.
1. Take on One Debt at a Time
While it is important that you continue paying all your bills during this time, throwing any extra cash at one particular type of debt will be the most helpful in allowing you to snowball. Many people find that it makes the most sense to start with the smallest debts first, gaining momentum and peace of mind as you do. Some people get more out of conquering the most expensive debts first. it's really up to you how to pursue debt.
2. Find a "Side Hustle"
If you have some extra time to generate more income, now may be the time. If you simply aren't earning enough to pay the bills, finding a way to earn in your spare time may be the key. You can do this by becoming a virtual assistant, opening an online shop, selling at flea markets, or anything else geared toward your talents and skills. Don't have time for a side job? You might benefit from putting all bonuses and overtime payments toward debt rather than other parts of your budget.
3. Pay More than Minimum
Any time it is possible, pay a bit more than the minimum amount due. This will help you from going backwards due to interest. Even paying a few extra dollars each month can shorten the amount of time in which you feel this pressure.
4. File Bankruptcy Only as a Last Resort
The decision to file for bankruptcy is not a simple one, but it can be helpful in some situations. For instance, you could be at risk for losing your home. Ultimately, it is wise to speak with a professional before arriving at this decision.
5. Talk to an Accountant
You might not realize it, but a certified public accountant like those at Carmines Robbins & Company PLC could be the key to helping you fight back against debt. In creating a solid plan of action, you are working on debt little by little. Make an appointment with a certified accountant today to learn more about your options for taking on debt of any kind.