How To Stop Being Overwhelmed By Your Debts

By Author: Nicholas Hunt
Total Articles: 434
Comment this article

If you are wondering how to stop being overwhelmed by your debts, you first need to get a good look at your problem. It is very important to acknowledge that you have a problem with debt, in order to begin to tackle the heart of the problem.

First, breathe, and gather all your outstanding bills together in one place. Next, make an organized list of your balances and due dates. Put the list in order by due dates for the next month. Write next to the due date the company you owe and the full amount you owe. Next to that, write down your monthly minimum payment amount. At the bottom of both owing columns, figure the totals. This should show the total amount of money you owe, and the amount you need monthly make minimum payments to everyone.

When you total up your monthly payments due, include regular hard expenses, such as mortgage or rent, food, insurance, gasoline, car payments, and any other living expenses beyond the debts. For income, include any expected income, including work pay, yard sale or eBay type income, and expected bonuses or other income for the upcoming month.

Once you have your debts and ...
... expenses on paper, it is time to consider what your income and cash flow really is on a monthly basis. Work this for the next month's pay, and income from other sources. Total this; compare with your totals that you figured for monthly minimum payments.

When you can look at your total expected monthly expenses versus your total expected income, you will see how much ahead or short you are for the next month. By working ahead you can scramble to find additional income if you know you are running short for the next month. It is important to plan ahead.

One way to stop being overwhelmed by your debts is to contact your debtors and see if you can get reduced or eliminated interest rates, or redo a mortgage in such a way to reduce your monthly payment. Lenders are very eager to have you pay the debts, and not default, so they will usually work with you.

Another possibility is to get a debt consolidation loan or credit card, to bring everything under one monthly payment that will be less than the total of the other bills because it will go for a longer term. A second job, or third, is another good way to get the income you need to handle your bills. And it isn't forever!

About the author: Nicholas writes for http://www.debtnation.co.uk/ which covers topics such as payday loan debt at http://www.debtnation.co.uk/payday-loan-debt.html