5 Helpful Debt Reduction Strategies

debt reduction strategiesIf you find yourself in over your head with debt these 5 Debt Reduction Strategies just might help turn things around for you and let you avoid bankruptcy.

  1. Pay more than the minimum payment on your credit cards.  Paying only the minimum amount each month could help you wind up with more debt, more stress and more time to get into additional financial trouble.
  2. Do not fall for high-interest loans that promise to pay off your credit cards or consolidate your debt.  Some of these in fact put you further in debt.  The worst thing you should be doing is trading low interest debt for high interest debt.
  3. Do not rely on family or friends to “float you” out of your financial troubles.  As an experienced bankruptcy attorney, I all to often see support systems, life-long friendships and family ties devastated due to money.  If these people are important to you, don’t put a strain on your relationship, work hard to explore other options.
  4. Work Smart Not Hard.  Explore what debt relief options are available to you, what they will save you, what your lifestyle will be like if you adopt them, and how they will affect your credit long term.
  5. Consult an experienced bankruptcy attorney sooner rather than later to discuss the debt reduction strategies available for your situation.  Your attorney can provide you with a plan to get you a fresh start or a plan to get you debt-free.

Consider Your Options

Bankruptcy may or may not be the best option, but you will only know this by talking to a professional.  Using one of the debt reduction strategies listed above may solve your problem.  Use your judgment and make sure you have a good connection with your attorney as this will be one of the most important resources in your journey out of debt.