It's difficult to know that you have bills you can't afford to pay or bills that you pay that never seem to help you pay down your debts. You work hard, but you're struggling financially. Should you have to struggle, or is there a way to help reduce your burden?
There are many ways to help reduce the amount of debt you have. Most Americans have credit card debts of around $5,700, and student loan debts average out at $14,400 as of 2016. It's no surprise that these debts mean that some people are in over their heads. It's hard to keep up with payments that can be as much as your monthly rent.
Some ways you can get out of debt include bankruptcy, negotiating lower interest rates and taking out a consolidation loan. One of the things you don't want to do is to tap into an account like your retirement. Doing this often ends up costing you more in the long term, and you may have to pay back that loan with interest, too.
One good way to lower your debts is by going through debt consolidation programs. Merging all your debts into one payment makes it easier to track how much you have left. If you have a good income and good credit rating, you may get a better interest rate on the larger amount, too.
If you decide that bankruptcy may be a better option for you, that's something to talk about with your attorney. He or she may know other alternatives that are worth trying or be able to start your bankruptcy paperwork.
Source: NASDAQ, "3 Considerations When You're Struggling with Debt," April 19, 2017