Debt is something that can cause a significant amount of stress among families. The decision to come up with a plan to completely eliminate your debt is a life-changing one. Becoming completely debt-free is unfortunately not something that will come overnight, and it does require a lot of time, patience, and sacrifice. Gaining control over your finances may seem like such a lot of work, but the time and effort spent on better managing your money is something that will end up changing your life in many ways.

Determine How Much Debt You’re In

Before you get started with getting rid of your debt, you need to understand how much debt you’re actually in. You can find out the extent of your debt by reviewing your current credit report. Credit reports make it easy to understand how many accounts you have open and how much money you owe to each creditor. Use your credit report and start making a list of creditors and how much is owed, and then calculate the total debt you have. When reviewing your credit report, make sure to write down anything on there that doesn’t make sense so you can call them and figure out what they are. Your debt may have been sold to creditors, depending on the age of it, and it may be listed under the debt collection agency’s name.

Get a Handle on Your Spending Issues

There are many reasons people get into trouble financially. Overspending can be just one of many addiction issues people face, whether in themselves or with a loved one. Addictions can be extremely costly. If you’re serious about eliminating your addiction, you need to be serious about saving money and becoming sober. Every time you spend money on the substance you struggle with, you have less money to put towards settling your debts. To get help with your addiction, look into outpatient drug treatment for the support you need to stay on the right track.

Spend Less and Save More

In order to pay off your debt, you need to reevaluate your spending habits. The less you spend, the more money you’ll have to pay off your debts. Spending less money starts with coming up with a budget. The first thing to do is to write down your income versus your bills. Look through your bank statements and determine where most of your money is going. If you’re spending money on things you don’t actually need, such a buying lunch every day or weekend shopping sprees, you need to develop more self-control when it comes to spending. Writing down how much you’re spending on unnecessary things can help put things into perspective for you.

Increase Your Income

Coming up with ways to increase your income is a great way to get your debt paid off quicker. There are legitimate ways you can earn money online that you can do when you have extra time. There are many get rich quick schemes out there, so if you see something that seems too good to be true, it probably is. Some legitimate ways to earn extra money working online are:

• Freelance writing

• Taking surveys

• Blogging

• Microtasking jobs, such as CrowdSource

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• Rating websites

There are also customer service type jobs that you can do from home, but those usually have set schedules and are not as flexible. Some online jobs will require some effort before you start seeing a steady extra income.

When it comes to paying off your debt, you’ll have to contact each creditor to find out exactly how much you owe and what types of payment plans they can arrange with you. Some creditors may be willing to settle your debt for a certain amount, which can usually be a significant amount less than the total price. Some may also allow you to pay a certain amount towards your debt monthly. You just have to take the time to make arrangements with each one until your debt is finally paid off.