If you find yourself deep in debt with not enough income to cover your monthly bills including the minimums on your debt, you may feel worried and depressed.  You may feel like there is no way out of the endless of cycle of debt, but there are several options available to you.

1.  Hire a debt management company.  These companies develop a plan for you, often referred to as a debt management scheme or a debt management plan.  They negotiate with creditors and try to get you lower interest rates.  They also distribute your payments to creditors.

However, caution must be taken to make sure that you are working with a reputable company.  Before you sign up, make sure to do your research; Yelp.com is a good place to begin reading reviews for the company you are thinking of working with.

2.  Have a trusted friend or family member work with you.  If budgets aren’t your forte, consider asking someone who is good with money.  My friend Jill is an accountant by day, and she has helped several friends develop a workable budget.  One of her newly married friends was so deep in debt that she had creditors calling her; Jill took over both her friend’s budget and her checkbook.  She doled out her friend and her husband’s spending money and paid their bills for a few months from their checking account until all of their accounts were caught up.  Then, she worked with them monthly to help teach them how to manage their budgets and pay their bills on time.

Obviously, there is a great risk here; I wouldn’t recommend handing over your checkbook, but it may be worthwhile to work with someone you know and trust to help you set up a budget and manage your bill paying system.

3.  Attend a class such as Dave Ramsey’s Financial Peace University.  Many people have made their way through Dave Ramsey’s course and praise it highly.  In this course, you will learn how to budget, how to save, how to pay off debt, and how to negotiate for better prices.  His snowball method is what my husband and I are now following to pay down our debt, and his theory to be gazelle intense and do what you can to pay down your debt as quickly as you can is what we are emulating.

If you are struggling to get your finances under control, know that there are several options available to you to improve your situation.  Choose the method that you are most comfortable with and makes the most sense to you.  However, take the time to learn how to budget and how to manage your bills so that you don’t find yourself in a similar situation in the future.


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