• Home
  • About
  • Advertise
  • Contact
  • Policy
  • Guest Post
  • Archive

One Cent At A Time

A Personal finance blog to get rich

  • Email
  • Facebook
  • Pinterest
  • RSS
  • Twitter
  • Beautiful Life
  • Becoming Rich
  • Beginners Guide
  • Extra Income
  • Productivity
  • Saving Money

What to do About Debt

January 19, 2013 Leave a Comment

Share this:

  • Tweet
  • Email

Many people get into serious problems with the level of debt that they have to live with, and the bad news is that there is no easy way out of debt. The ways out involve hard work, saving and having a plan to get to the point where you can consider yourself debt-free. Refer to 51 Ways to Get Out of Debt for objective to-do list.

How to avoid debt

For some people this will mean clearing all debts except for the mortgage, for others they’ll want to clear that too before they feel they can breathe easy. However, as with most things in life, every person’s own perception of their financial situation is different. Some people might be quite happy paying off the minimum each month and accepting the constantly rising interest that is adding to their existing debts, others like to pay their credit cards in full every month and not incur even the smallest amount of interest.

However, most people who are reading about debt on the internet are unlikely to fit into that last category, and will have a level of debt that they are finding very difficult to handle. If you can’t seem to make any headway on your debts through strict budgeting and frugal living, it may be time to take professional advice from a debt management company.

Usually, the advice they offer comes with a fee, but they can really help take away the stress caused by the administrative hassle that comes with debt, and having them construct a plan for you can really help. For smaller amounts of debt, they may suggest a debt management plan. This is where you and the debt management company look at your income and outgoings and your existing debts, and work out a budget for you to live on, and set a fixed monthly payment that you make to the debt management company which then redistributes that payment to your creditors.

For the person in debt, this can really help take the stress out of the situation as you’ll have just one point of liaison for various debts rather than being chased by individual creditors.

If you have debts that are significantly larger, it may be that you are advised to get a debt consolidation loan but this should come with a health warning. A debt consolidation loan is basically a larger loan that you take out to pay off all your existing unsecured debts, but once those have been cleared, some people then feel tempted to start spending again before they have paid off the new loan, and end up back where they started.

However a debt consolidation loan can be a good choice if you are self-disciplined enough to handle it as interest rates are often lower than on various store and credit cards. You may be in debt for longer this way, but if you stick to the payments, you’ll work your way clear in the end.

For really serious debts, bankruptcy may be a last-resort option, but it’s not something you should even consider until you’ve tried other methods to get out of debt. And before entering into any kind of agreement with a debt management company, get some independent advice from a third party.

LIKE THIS POST?
I agree to have my personal information transfered to MailChimp ( more information )
Join our community of 8000+ subscribers to increase your net worth and build wealth
We hate spam. Your email address will not be sold or shared with anyone else.

Share this:

  • Tweet
  • Email
The tool that changed the way I manage my personal finance - Personal Capital, The Best Free Personal Finance Tool

Want to start a WordPress blog now? The onecentatatime.com blog is hosted by Siteground Web Hosting. For only $3.95 a month, Siteground can help you set up and host your website/blog quickly and easily.

About the Blogger Hi I am SB, a personal finance enthusiast with a career in software development. I am an immigrant to the USA since 2005, after being born and brought up in India. This 40 something technocrat lives and breathes personal finance whenever he gets time from the day job, job as a husband and a dad

Some links on this page may be affiliate links, if you make a purchase following the links, I may earn a commission. Read affiliate disclosure here
« When Should I Use A Credit Card?
21 Tax Return Mistakes to Avoid This Year »

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.



Create your own blog in 20 minutes and $20

Personal Capital, a free tool to change your financial health today

I use and suggest Upstart, for your personal loan need

CreditKarma, a free tool to check your credit scorey

I use Coinbase, for my crypto investments

101 Cents at a Time

101 Ways to Earn Extra Money on the Side
201 Frugal and Perfect Birthday Gifts
101 Ways to Save Money Everyday
101 Ways to be Better and Successful at Work
101 Ways to Save Environment and Energy
101 Frugal and Romantic Anniversary Ideas
101 Low-Cost Men's Fashion Ideas
101 Personal Finance Tips
101 Ways to Reuse Household Stuff
101 Things to Do, When Nothing to Do
101 College Graduation Gift Ideas
100 Tips for Ecommerce Startup
101 Ways to Enjoy Indoor During Winter
101 Ways to Beat Procrastination

Popular Posts

Quick Cash - How to make $100 legally, in a day
Living well on less than $15,000 a Year
Top survey sites for side income
What to do when auto repair goes wrong
Where should I invest my money now?
20 Ways to be productive and happy at work
51 Ways to get out of debt
Be a better person in 15 days, 15 ways
Income ideas for retirees and senior citizens
51 side jobs for college students
Urgently need a large amount of money?
Should I buy or should I rent?
Best Personal loan providers
25 Ways to save environment
25 DIY car repairs to save money
How to decorate office cubicle
How to show your wife you care
50 Financial Rules for Success
51 Frugal weekend family activity ideas
Become Rich By Saving 1 Hour Of Daily Wage
How much do I need to save for retirement?
How to negotiate your salary

Follow us on FaceBook

About Author

SB

Blogger by choice and IT manager by profession. Finance is my passion and gardening is my greatest satisfaction. Born in India, settled in US, Husband and a father. I created this blog in 2011 with a vision to help others. Thanks for your patronage. More info on my "about" page.

View all posts


Subscribe

Join our community of 5000+ subscribers to increase net worth and build wealth

Advertisements

Personal Stories

How I got a new HP computer replaced
Was COVID circulating in USA in fall of 2019?
How my credit score went up 800+
Why I didn’t invest in Bitcoins
How I controlled impulses to buy things
Why this blog is named One Cent at a Time

Subscribe via Email

Site Disclaimer

Disclosure of Material Connection: Some of the links in this web site are “affiliate links.” This means if you click on the link and purchase the item, I will receive an affiliate commission. Regardless, I only recommend products or services I use personally and believe will add value to my readers. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”
Read full Affiliate disclosure


One Cent at a Time is published by SB. The opinions expressed herein by him are his own and not those of his employer or anyone else. All content on One Cent at a Time is for entertainment purposes only. By reading this blog, you agree that SB and/or One Cent at a Time is not responsible for any actions taken after reading this blog. For the full disclaimer, click here .

Major Media Mention

One Cent at a Time Media Appearances

Copyright © 2023 One Cent At A Time · Designed by Nuts and Bolts Media