How to Solve Debt and Credit Problems

There are over one billion credit cards in circulation in the United States, according to Financial Freedom. Debt has become a major problem for consumers in the United States. If you're in debt you can get out of debt by developing a plan and being patient.

Instructions

Create a Budget

1

Compose a list of your monthly expenses with items like car insurance, car payments, health insurance, food, cell phone bills, heating and electric bills, water bills and any other expenses you might have.

2

Analyze your budget and look for expenses that you can cut out or reduce. For example, you might spend less money on food or use your cell phone less to save money.

3

Attach a copy of your budget to your refrigerator and track your expenses each month to see if you're staying within the budget you created.

Communicate with Creditors

4

Make a list of who you owe money to and how much money you owe each company.

5

Call each company and explain why you've been having a difficult time paying your bills.

6

Ask representatives from each company if there's a way you can develop a more affordable payment plan to pay off your bills. Credit card companies are sometimes willing to settle for less than the full amount you owe.

Prioritize Your Bills

7

Create a list of your debts and their interest rates.

8

List your bills from most important to least important. For example, mortgage and health insurance payments might rank the highest on your list.

9

Pay off bills with the highest interest rates first whenever possible to save money and avoid paying more than you have to in interest.