Things you can do to overcome your debt

Been getting stressed about your debt? Calm yourself and focus. There are still ways to overcome your debt.

07:10 09 October 2013

When you find it difficult to manage your finances and you may have been missing repayments, what can you do to get back on the right track? Of course, it may seem impossible to get out of your situation but you have to focus on the problem itself. The way to solve it is to face it. Calm yourself and think hard about the possible ways you can solve or at least improve your situation slowly but surely.

• Contact your lender

The first thing you can do is contact your lender. Inform him of your current situation and the possibility that you would not be able to make repayments for a time. Maybe you could negotiate for a short term payment reduction or for a repayment holiday. Though availing these options will mean additional interest, at least it will be minimal as compared to the penalties when you miss payments. And pressure on your mind will be lift up while you think of ways to solve your problem.

• Ask a family member or a friend

Ask someone close to you if anybody could lend you money and just repay them as soon as you get into the right track.

• Cut down expenses

Make a list of your expenses. Note which ones have been necessary and which are not. From this list, you will know from where you could cut down your expenses. Make sure not to make the same mistake and stop spending money that you don’t have.

• Increase source of income

While eliminating unnecessary expenses, you could rather think of possible ways to earn extra income. That way, you can make your repayments faster.