29 Dec
2009

If you have a lot of debt but can afford to make some progress on it, you can likely pay off your personal loans, student loans, credit cards, and other debt. If you are having trouble making it financially from month to month, though, and are falling behind you may need more help. If you are relying on payday loans or are getting collection agency calls, you have likely missed some of the signs that your debt was getting out of control. There are still a few things you can do:

1) Focus on making more money and increasing your income so that you can invest the extra cash into your debt load.

2) Seek professional help. Your bank may have advisors who can help you set a budget and evaluate your options. There are also non-profit credit repair companies that may be able to help you. These companies can help you negotiate with lenders or can help you get a consolidation loan. Just be aware that these companies are not all the same. Some charge hefty fees and some are not as helpful as advertised. Research carefully, read all the fine print, and make sure that you understand what services you are getting. Do not sign up with a company if they will be doing things you could do for yourself.

3) Learn about bankruptcy. If you are really in debt and your ability to make money is affected by illness or some other problem, bankruptcy is a chance to start over. It can be a way to get a fresh start if you truly cannot pay your debt, but it will affect your credit score for some time, so think carefully.

4) Read our credit repair guide for more great tips.

A big debt can be scary but there is a solution for just about everyone out there. Be persistent, know your options and you, too, can get out of debt.