Is high debt bringing you down? If you feel overwhelmed with your amount of debt and the rising balances, then it may be time to take your debt into your own hands and solve your financial strain once and for all.

First Steps

The first step is to make a list of every single debt you owe to get a clear and concise picture of where you stand financially. Once you have a complete and thorough list, begin checking all interest rates, making notes of interest rates (as well as addresses and phone numbers), and listing your debts in order from highest interest rate to lowest rate.

Next, begin making calls to all your creditors to talk to them about your debt. Honest communication can go a long way when dealing with creditors. If possible, offer to pay them the balance in full at a lower cost. Let them know you are working on paying off your debts and ask for a lower interest rate. You may be surprised with their willingness to work with you. Look into consolidating your higher rate cards onto your lower interest rate cards. Do everything you can to minimize your about of debt.

Prioritize

Once you have your list of debts, from highest priority to lowest, begin to prioritize. You will want to pay off, not your largest debt, or your smallest debt, but prioritize by paying off the card with the highest interest rate since this is the debt that is growing the quickest and will make it harder for you to become debt free. Instead of paying the minimum on your cards, pay the minimum for everything except the debt at the top of your list. Pay as much as you can on your highest interest card with the intentions of paying it off quickly to move on to the next debt on your list.

Seek help through a debt consolidation or a debt consolidation loan

If you find that your amount of debt is overwhelming, or are unable to pay more than the minimums required, you may want to think about seeking help through a debt consolidation company, or by taking out a debt consolidation loan. In the worst case scenario you may even want to file bankruptcy.

No matter what you decide to do, taking responsibility for your debts and doing your best to pay them off in a timely manner will not only free up your financial strain, but offer you a sense of accomplishment and control over your spending habits.