Options to Help You Manage Your Debt

debt Over the course of your life you’re going to incur some form of debt, be it a loan for school or the mortgage on your house.  During your life you will owe someone money.  In the past 20 years it is more and more common to borrow money.  Along with debt the cost of living has also increased over the same time frame.   It isn’t all doom and gloom, debt can be stressful but there are options to help you manage your debt.

Before you learn how to manage your debt, you must first understand a little more about debt.

How you fall into debt

You need to understand how you fell into debt and what bills you need to pay.  Debt comes from sources like student loan, credit cards, car loans and your mortgage.  You may also owe money for medical bills, gambling, divorce and poor management of your money.  While you need to pay your bills you also need to ensure your financial security.

Negative effects of debt

You need to understand the impact of debt to understand the potential risks that go with it.  Some of these are extreme cases but you should be aware of them anyway.

Wage Garnishment

If you owe debt such as student loans or child support you can have your wages garnished in order to cover what you owe.  Money will be deducted from your paycheck before you even see it.

Eviction or Loss of Your Home

If you can pay the rent or mortgage on time the bank or landlord can initiate proceedings to have you removed from your home.

Bad DecisionsH

Financial desperation can lead to some very poor financial decisions that give you even more problems.  Things like payday loans or borrowing at extremely high rates of interest will only make the situation worse not solve your problems.

Debt Relief Options

There are options out there to help you get out of the financial hole that you’re in most companies will offer strategies to help you pay the money back or at least a significant portion of it.

Credit Counselling

There are organizations that can help you learn to budget and take your debt and roll it into one monthly payment while reducing the amount of interest you will pay along with the rate.

Debt Negotiation

This is where someone will negotiate on your behalf to reduce the sum of money that owe, however you must demonstrate that you are experiencing financial hardship such as job loss or reduced employment.


Bankruptcy is your last financial resort and it may remove all of your debt at once, however it will affect your ability to borrow money, rent an apartment or find a job in the future.  Bankruptcy may stay on your financial records for years and debts like child support will not be affected by bankruptcy.

No matter the strategy you choose to get yourself out of debt there will be consequences that you need to understand before you try any of these options.