You’re already up to your ear with debts and this tiny voice inside your head keeps on saying, “What do I do now? I’m doomed!”
The first thing to do is to simply take a deep breath and relax. You can still get out of this if you play your cards right. How? Let us help you with that through three might-not-be-as-easy steps:
Step #1: Evaluate
Compute how much your debts is and sort out its urgency. Which ones are the highest? Which ones are needed to be paid ASAP? Afterwards, figure out a strategy that suits you best. One tactic that could work for you would be paying off the cheapest loans you have to get it out of the way and to shorten your list so that it doesn’t look that overwhelming.
Another approach could be paying off those with the highest interest rates first in order to make sure that you wouldn’t be paying so much more than what you initially needed to complete. Once your interests have already skyrocketed after some time, getting out of your debt might prove to be an even greater challenge than it should be.
Step #2: Lifestyle change
Once you’ve tracked all your debts, you’ll have a more or less bird’s eye view on what’s causing your financial crisis. Is it because you’ve been having too much fun swiping your credit card? Is it because you always forget to pay your dues on time?
Whatever the cause is, you have to step up your game and carefully plan what needs to be modified, adjusted, or completely removed. Change your payment scheme, freeze your credit cards, and drop the expensive habits you don’t really need.
Step #3: Improvise
You can’t get out of debts by creating more debts – or else, your cycle will never end! Instead of looking for institutions that can help you out with such a bad credit score, turn your efforts into finding gigs and an extra source of income. May it be tutoring or babysitting, every cent counts!
Of course, prevention is always better than cure. The trick here is to not let your loans balloon in the first place. Learn how to pay on time and to only take on what you can handle. Once you’ve gotten out of this sticky situation, learn from it and make sure to always remember your takeaways – like how hard it was to sacrifice your binge-watch time for some freelancing. Moving forward, let it serve as a lesson and a reminder to not spiral down into debts again. Discipline is key!