Being in a large amount of debt can take a serious toll on your emotional well being, and the longer you allow yourself to stay in debt, the lower your credit score will fall. Having a poor credit score due to debt can make obtaining credit cards and loans in the future very difficult. You can easily take small steps in your life to repair your credit and manage your debt.
Get a Second Job
Working a second part-time job will provide you with more money to use towards paying off your existing debt. Even if you only work a few extra hours per week tending bar or waiting tables, you will be one step closer to being out of debt. Devote all of the money you make from your second job towards paying off your credit cards, loans and other sources of debt. Once your debt is paid off, save the money you make from your second job in an emergency fund that you can use towards avoiding falling into debt in the future.
Cancel Your Credit Cards
Credit cards can cause you to fall into a never ending cycle of debt if you use them on a regular basis and only make the minimum monthly payment. To avoid being in constant debt because of your credit cards, cancel each card as you pay them off. Cancel cards you have had for the shortest amount of time first as you have a longer credit history running with cards you have carried for the longest amount of time. Limit yourself to only one or two credit cards once you have paid each card off.
Use a Debt Consolidation Company
If you are in a serious amount of debt and are considering filing for bankruptcy, a debt consolidation company can help you pay off your debt without taking a negative toll on your credit in the way bankruptcy would. A debt consolidation company will consolidate all of your debt by paying off all of the companies you have unsecured debt through. The company will do this in the form of a loan that you will be required to repay, which can be useful in trying to get out of debt as you will only be making one monthly payment with one attached interest rate instead of multiple monthly payments with various interest rates.
Sell Your Belongings
You can sell your belongings that you no longer need and use the money to pay off your debt. Electronics, clothing, collectibles, DVDs, computer equipment and other various items can all be sold to help you get out of debt faster. Sell your items online or to friends and family members.
Rent Out Space in Your Home
If you have a spare bedroom in your house, rent it out to an individual in need of a place to stay. The money collected for rent can be applied directly towards your debt.
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