If you are one of millions facing serious debt problems, don't worry. There are ways to get out from under your debts. The first step is admitting your debts are a problem. Next, develop a plan. Consider one of these debt stress relieving strategies for finding relief.
Debt Stress Relieving Strategies
First, evaluate the level of need for your debts. Are you able to make your minimum payments or more each month? Are you having a hard time making ends meet and worry you might miss a payment? If your debts are mild or moderate you can likely manage your debts on your own with a plan.
There are some common ways to eliminate a mild or moderate debt problem. The "snowball method" is used often for people who have more than one debt account. Choose the account with the lowest balance. Pay minimum payments on all other debt accounts. Pay as much above minimum as you can afford on the chosen account. Move onto the next account with the highest balance once it is paid off. Afterwards, repeat this strategy until all of your accounts are paid off.
If you are looking for a quicker strategy and can afford to repay yourself, you could borrow from yourself. Take some money from your 401(k) or savings to pay off the balance in one lump sum. However, always negotiate with your lender before paying a lump sum. Similarly, most creditors are willing to lower your total debt balance if you can pay it off at once. Take the time to talk to your lender and get the best deal. Be sure to repay what you borrowed by making payments back into your savings account each month.
However, some debt problems are too serious to approach by the snowball or borrowing method. If you are at risk of missing a payment or can't make ends meet, call a Sacramento bankruptcy lawyer. They can evaluate your situation and discuss your options. It is important to make an educated decision about how to relieve serious debt problems.