We understand that getting out of debt is not easy. While you may do well with eliminating debt for a while, calamities may occur that cause you to incur more debt. Regardless of how frustrated you may be with your debt load, there are ways to gradually reduce it with the money you already have. As with our previous tips, we believe that these guidelines should become a part of your new financial reality.

Get organized – Part of destroying debt is knowing exactly who you owe, and what you owe to them. You should have received end-of-year statements from creditors (especially mortgagors, car loan holders, and credit card issuers). This can help you create a realistic plan to tackle debt.

Focus on one debt at a time – Resist the urge to spread thin payments among a multitude of creditors. But what does one do with multiple debts; tackle the debt with the highest interest rate, or the account with the smallest balance? If you have limited income or no upcoming bonuses, it makes sense to attack the smallest debt first. This provides a financial victory as well as the confidence that you can take down larger bills.

Look for opportunities with your current income – This involves diligent tracking of your expenses. You might be surprised with what you can save if you really look. Think about trimming premium channels (or subscriptions) from your cable bill or adopting Netflix altogether. You may also be able to change your cell phone plan. If you eat out more than twice a week, that can be curtailed as well. You will be surprised with how many opportunities you can create when you tweak your budget to save money.

If you have additional questions about how a bankruptcy attorney can help you with debt relief, we invite you to contact us.