How to Make 2021 The Year Your Business Takes Off

As debts are part of adult life, these should be handled seriously and maturely as debts can also bring stress to an unimaginable level.

That is, when your debts get piled up, and you don’t have the financial capacity anymore to cover them with your income.

You wish you can run away from it or disappear on this planet for a period, but you just can’t get away from that reality as it will haunt you day in and day out.

You have to face reality.

When you’ve realized that you’re experiencing a financial crisis, you have to look for means on how to rise above that ordeal.

It’s not going to be an overnight success, but it would be a gradual process that would teach you how to take care of your finances with a sense of practicality and humility.

Here are suggestions that you can try to help you get out of your debt problems:

1. Know the Nature of Your Debts.

It’s necessary that you get to know in detail each debt that you’ve incurred. This will allow you to identify how to repay each and what program you can take to pay them off.

Features like interest rates, penalties and creditor would give you an idea of how to negotiate to resolve each financial liability.

For instance, if you struggle to pay your medical bills, you can contact individual medical providers that can help you design a solution to fix the problem.

2. Negotiate with Your Creditors.

When you’ve realized that you’re very much behind with your payments, you have to contact your creditors and discuss with them about your current financial hardship.

There’s no need to be embarrassed in doing this as this is a situation they are familiar with.

The fact that you took the initiative to call them first and, with all honesty, reveal your problem to them is more than enough for them to understand that you’re willing to settle your problem with them.

3. Get Professional Help.

If you don’t have enough know-how in creating a possible scheme to resolve your debt problems, you can seek help from a financial expert, specifically a debt counseling agency.

Debt counselors can help you design a plan to get out of your financial misery by basing it on details of your income, expenses, and debts. That can apply to your company’s finances too.

Through their plan, they would create recommendations to help you get out of your debt.

The only thing that you need to do is to identify if the agency that you’re consulting with is a non-profit, and it’s a member of the Association of Independent Consumer Credit Agencies (AICCA) or National Foundation of Credit Counsellors (NFCC).

This will give you confidence you’re consulting with a non-scam debt counseling agency.

4. Try the Debt Snowball.

If you don’t want to seek help from a debt counseling agency, then this DIY approach may work for you.

It requires you to pay off your credit cards by focusing on either the one with the highest interest or lowest interest rate. The process involves placing more effort into paying off the credit card that you want to pay off in the shortest possible period.

After this, you then focus on the next debt until you’ve paid off all your credit cards. It’s a “snowball” effect, and by doing it you start with the one that would help you begin creating significant financial improvement.

5. Re-organize Your Budget.

Most of the time, debt problems can be attributed to the overspending habit of the consumer. If this is your case, then it’s about time to re-organize your monthly budget. This means you have to cut back on certain expenses which you don’t need at all and focus on the necessary ones and your monthly payments.

In such manner, you can maximize your income only to expenditures and repayments that need to be settled for that month. You have to learn to prioritize which needs to be paid first and which one is the last. This would allow you to see which of your expenses need more financial effort.

You have to start living within your means and focus on the necessities. This would be a laborious undertaking, but at least this would get you out of your financial crisis at the end. You just need to plan and persevere using this method. Otherwise, your plan would only be put in vain.

6. Consolidate Your Loans.

Another popular financial strategy that most people use to get them out of the burden of their debts is through consolidating their loans by getting another loan to pay all of it.

This is possible as there are a lot of banks and credit unions out there that are willing to give you this solution to fix your problem.

The great thing about loan consolidations is that lenders would give you low-interest rates and better repayment schemes so that you can save up more money that you can use for your other needs.

You have to stick to this plan with consistency since this is going to be your shot at financial freedom after you’ve paid your new loan that covers other smaller or more significant debts.

There are always second chances for everyone, especially if you talk about getting out of debt problems. Use this as your way of redeeming your well-balanced financial standing in the next 2-3 years.

7. File for Bankruptcy.

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Although this is not a right path to tread upon, this move could give you financial respite when worst comes to worst with the handling of your debts.

You can opt to file for either Chapter 7 or Chapter 13 bankruptcy depending on which one you would qualify for.

You have to take this seriously as this one has legal implications and the court will play a significant role in the following areas:

  • eliminating your unsecured debts;
  • keeping your house and car;
  • liquidating your assets;
  • reorganizing your re-payment scheme;
  • and paying off other debts.

In addition to that, this would affect your credit score rating and opportunities to acquire loan or credit in the future.


Paying off your debts require you to be practical and smart in choosing which option would best work for you. Whether you do it yourself or you seek professional help from companies like Crediful, the last say still comes from you.

You must make the right decision to gain back that peace of mind when it comes to your finances. Whether you have a small debt or a large debt, it’s time for you to work out what to do next. Are you ready to pay back your debts?

About The Author

This article was written by Jess Holmes.