Living with unmanageable debt can seem like a hopeless situation, especially if your creditors have already taken action against you. In some cases, filing for bankruptcy can be your best option, but other times you can take control of your finances and pay down debt. Below are a few tips for getting yourself out of debt as soon as possible.

4 Strategies for Getting Out of Debt

1. Stop Buying on Credit

Every credit card purchase adds to the deficit, so stop borrowing money right away. While you may not want to cancel your credit cards, take them out of your purse or wallet, and leave them home when you shop.

2. Set a Budget

You should know exactly how much you have to spend on housing, bills, and other necessities to take control of your finances. Consider downloading an app on your phone that will track your spending, helping you find ways to cut costs and put more toward your debts. If you prefer analog methods, there are finance planners available that allow you to write down and track expenses by hand.

3. Settle High-Interest Debt First

Every dollar you spend on interest wastes money, so prioritize the debts with the highest rates. Paying off those credit cards and loans first can save hundreds or thousands of dollars in the long run. Referred to as a “debt snowball,” by paying off the highest interest rates first and working your way down, you will have more money to use to pay off debt quicker.

4. Pay More Than the Minimum

Minimum payment amounts maximize your interest payments, not get you out of debt. Try to at least double the minimum or make payments twice a month. If you can’t afford even to pay the minimums, filing for bankruptcy may be the best option.

If you’re struggling with debts you can’t repay, Harry B. Zornow can help you get a second chance. For over 30 years, he’s been assisting borrowers throughout the Hamilton, OH, area manage their debts and reclaim their lives by filing for bankruptcy. Visit his website to learn how he can help you get back to solid ground. Call (513) 737-9770 to find out if filing for bankruptcy is right for you.