7 Ways to Take Control of Debt

Your debt situation may differ. This article should not be taken as legal advice.

1. Stop Adding to the Balance
If you are adding to your credit card balance every month stop using your credit cards. Throw them away, they are only adding to the problem.

2. Pay the Minimum, and then some.
It may be common sense, but the quicker you pay off your debt the better. There is no reason you should pay more interest than needed if you can pay off your bills early.

3. Cash In your Investments
If interest is swallowing our credit you may want to cash in some of your investments. You can even borrow against your life insurance if you need be.

4. Ask for Help
Your friends and family are likely to help. All you need to do is ask and you can be on your way to having debt under control.

5. Borrow from your 401(k)
You can borrow up to 50% or $50,000 dollars from you 401(k). This option can come back to bite you if you change jobs, so consider the option carefully.

6. Renegotiate with Creditors
Your creditors do not want you to file bankruptcy. If you have to file for bankruptcy your creditors will likely receive less than if you renegotiated. Knowing this they are likely to lower what you owe to something manageable.

7. File for Bankruptcy
It may not be you what you want to do, but it may be what you need to do. Bankruptcy was created for those who need it and there is no reason not to use it. Read up on chapter 7 and 13 bankruptcy and figure out what is good for you.