person computing using calculator and pen

How to Overcome Your Debt Burden and Improve Your Life

The average Miami resident carries about $5,000 in credit card debt and an average of $24,947 in student loans. Tuck on a $15,000 auto loan, and you’ll understand why debt relief in Miami, FL, is a hot topic. Most people are up to their eyeballs in debts that are threatening to take over their lives.

With such odds stacked against you, it’s common for people to resign to a life of financial hardships or even consider filing for bankruptcy. That shouldn’t be the case; there’s a way out of this mess.

1. Commit to a debt management plan.

Getting out from under a pile of crushing is not a walk in the park as it needs total commitment from you. You need to stick it out even when the going gets tough and feel like giving up. Creating a debt repayment plan provides you with the road map to help you achieve this goal.

If you’re unsure how to go about this, it’s best that you first attend consumer credit counseling. Most such agencies don’t charge for the hour-long session where you discuss your finances with a counselor. If you’re so deep in the red, the counselor may recommend a debt repayment plan.

They can negotiate with your creditors to extend the repayment terms or lower the monthly amounts. If most of your creditor find the terms agreeable, you would have to send the money to the DMP. The agency would then forward the cash to the creditor.

For such a plan to work, you’d have to commit to remitting the money to the agency for the duration of the program, which takes several years. In the meantime, you might have to give up all your credit cards. It might take a while, but you would emerge debt free on the other end.

2. Build your income.

increasing stack of coinsDebt repayment on a fixed budget can prove to be a hellishly painful experience that can cause you to fall off the wagon, especially when you don’t have enough money to meet your basic needs. You certainly wouldn’t let your kids go hungry to pay off a creditor now, would you?

Growing your income is the only logical way to avoid being backed into a corner. You may have committed more of your time to work, but the extra income will make your journey more bearable. It means the difference between breezing through the debt repayment process and agonizing over its every moment.

That would mean going after any honest avenue that would let you earn an extra buck. That could mean picking an extra shift at work or looking for a second job. You can also enlist the help of your older kids or spouse in the quest to grow your income.

The road to being debt is often tough and challenging, but being debt free makes weathering through the rough times worthwhile. Sticking out with your debt repayment plan and finding ways to grow your income will help you get there. Having an additional paycheck not only lets you speed up the repayment process but also makes the process less taxing on your family.