What to do if you Have too Much Debt


Are you drowning in a sea of student loans? Do you have too much credit card debt with the interest rate piling up?

Being in debt can be stressful and can cause a lot of anxiety/worry. It is due to this anxiety that people don’t even bother getting their financial problems fixed. Every time something reminds them about their debt they choose to run away from it; in an attempt to ease some mental pressure.


Here are a few tips that will help you deal with the stress of being in debt and also get out of it as soon as possible.

1. Find ways to earn more money

?How can I afford it?? opened up the brain and forced it to think and search for answers.?

? Robert T. Kiyosaki, Rich Dad, Poor Dad

Most people(who are in deep debt) are less likely to change their spending habits and lower their standard of living. If you are one of these people, then getting out debt should consequently be easy as you have the leverage to work hard and earn more money.

If you are not the entrepreneur-type than consider getting another job that pays well in the short term. Many jobs pay well and don’t require much physical effort. The formula to pay off your debt is quite simple. Earn more, pay off your debts and continue to live a flamboyant life.

2. Live frugally

Living frugally is another thing you can do if you have too much debt. Some cultures like Chinese, Indian and Japanese are purely based on living a minimalistic life and finding joy in things that are naturally available to for free.

Consider learning about these cultures and cut down your spending by 60-70 percent. You can use the saved money to pay off your debt and become free in no time.

3. Debt Management Plan

If you have too much debt and managing it by yourself is not possible then you should sign up for a Debt Management Plan. Debt Management companies work with lenders and creditors to lower your overall debt. They also help you lower your interest rate and negotiate a longer repayment plan. This plan is a blessing for people who don’t understand personal finances that well and are in a desperate need for help.

4. Personal Bankruptcy

This is the final solution and should be exercised when you are left with no other options. Most people declare personal bankruptcy when they run out money or their business fails and they have no source of income left. Declaring bankruptcy will clear most of your debt but some debt-types like alimony/child support are nondischargeable.


Getting out of debt may seem like a huge mountain to climb but it is not that difficult. The best way to clear your debts as fast as possible is by changing your spending habits and seeking advice from a finance expert. Once you know how much debt you owe to every creditor, it becomes easy to follow a payment schedule; which will work as a reminder so that you don’t forget to pay your bills on time.

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