Four steps to reduce your debt

Only you can solve your debt problem. And you can only solve it if you decide that it’s a problem worth solving.

There are a few ways of making that commitment. Some experts recommend writing a statement owning up to the problem and signing it. Others suggest that you call a family meeting and have an open discussion of the debts you face. A debt problem is rarely felt or solved by just one person, and the ideas and efforts of every member of the family may be needed to get you back in the black. People often find that this open acknowledgment of a debt problem is a relief to the others in their families. And it usually comes as no surprise.

The other effective way to make a commitment to solving a debt problem is to talk with a financial counselor or attend a meeting of others with debt problems. (You’ll find some ways to make these connections in the next section, “Ask for help,” which begins on page 34.) Talking about a problem pushes you to admit to yourself that you really do need to take action. Knowing that you’ll be expected to talk again to that same person or group and report on your progress is also a powerful incentive to act—and to stay on track once you start. And finding other people who understand your problem and who have come up with ways to deal with similar problems can be a huge relief if you’ve been shouldering this worry yourself for a long time.

Getting Out of Debts (Step by Step Instructions)

• Do you have a debt problem?
• Why it’s so easy to get into debt trouble
• Four steps to reduce your debt
  Step 1 - Admit that you have a problem and commit yourself to fixing it.
  Step 2 - Stop debt spending.
  Step 3 - Make a spending plan.
  Step 4 - Pay down your debts month by month. Pay them off one by one.
  
  
• Ask for Financial help
• If you’re behind in your payments
• What about bankruptcy?
• What you should know about your credit record
• Making your money work for you