What To Do If You Are Struggling With Debts

What To Do If You Are Struggling With Debts

Most people face financial issues at one point in their lives. Unexpected events happen, the bills keep on coming and you might find yourself struggling to make ends meet. If you’ve been having money trouble and you don’t know how to pay your debts anymore, it’s important not to ignore the situation, hoping that the problem will solve itself out on its own. Taking action as soon as possible is the best way to sort your finances out and get back on your feet.

Do the math

If you want to solve your issues, you must know what you’re dealing with exactly. So the first step is to grab a pen and a piece of paper and write down all your debts. After adding them all up, the total amount might look scary, but you’ve got to face reality. Having an overall picture of your situation will help you organize yourself and get to the next step of getting out of debt.

Get organized

Once you’ve made the necessary calculations, you can start to analyze your budget. It’s obvious that you won’t have money to pay everything at once or else you wouldn’t be in this situation to begin with. But if you do have a steady income, you should analyze your expenses and come up with a plan that will allow you to allocate a certain amount each month toward paying your debts. It’s not an overnight solution, but being perseverant is a must. After a few months you’ll realize that you’re moving slowly but surely on the path to becoming debt free.


Not all debts are the same, so you must learn to prioritize. Some debts, such as mortgage or utility bills, should be at the top of your list because late payments can result in serious consequences. If you miss too many payments on your mortgage, you can face foreclosure. But know that even if you find yourself in this situation, there’s still time to mend things. Since foreclosure laws vary from state to state and legal terms can be daunting, it’s important to talk to a professional in your area about it. For example, a Philadelphia foreclosure lawyer can explain how foreclosure laws in Pennsylvania work and can help you understand your options.

Cooperate with your lenders

People usually hide from their lenders when they’re unable to pay a debt. But most times, lenders would rather work with you to find a solution rather than chase you around and force you to pay the debt by taking legal action. Nobody wants to enter a time-consuming legal process, so it’s wise to contact your lenders and let them know you’re having financial difficulties. If both you and the lender are willing to cooperate, chances are you’ll be able to come up with a plan that will benefit both parties. Usually options involve putting a few payments or the interest on hold until you recover financially or devising a payment plan that will make it easier for you to pay the debt.