Debt is the one of the biggest causes of depression among working adults. The level of consumer debt people is now carrying is bigger than ever before and the only way to get out of that hole is to start digging your way out again.

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    The trouble is, not many know how to do that! It’s relatively easy to get into debt, but it can be impossible to get out of it again, especially with the rates of interest piled on top of the debtor. Bills will never vanish just by throwing them in the bin, so burying your head in the sand is not the way to go. We have put together for you 6 ways you can get yourself out of the ditch of debt that you have been digging for yourself, so check out our tips and see how they can help you:

    • Face It: Debt will not go away if you shut your eyes and sing a song. Downloading your credit file, pulling out all the outstanding bills and bank statements and laying them out in front of you is the first step. Don’t be ashamed of getting into debt, be proud for actively doing something about it now.

     

    • Prioritise: For some people, the way forward and out of debt is by taking out further credit lines, making the choice to compare credit cards with the lowest interest rates and consolidating what debt they do have. This makes it easier to have one payment for all debts. Once you have an idea of what you owe and to whom, you can start to chip away at the mountain of debt. Put the debts in order of highest interest and priority and work out what you can afford to pay them off.

     

    • Communicate: The next thing you need to do is contact the people that you owe. You may be surprised with how much you can negotiate to give yourself the best deal on paying back what you owe. Some debtors may be happy to give you a discounted repayment just for trying to make a plan. You cannot do this without speaking to them, though, so pick up the phone and get calling.

     

    • Damage Control: Chopping up those store cards you don’t use or need, cancelling contracts with phone companies and other lines of credit that you don’t need and getting rid of outstanding accounts to use one or two more manageable lines of credit is the way to go. Consolidation is key for debt management.

     

    • Cuts: Some of the lifestyle decisions you need to make to get yourself out of debt will feel painful in the short-term, but be good for you in the long-term. Cutting back on the nights out or gym membership may not be what you want, but it’ll help you pay those debt off that little bit faster.

     

    • Stay Out: Once you’ve got a handle on your debts, staying out of it is the next step. Don’t be tempted by those interest rates on store cards. Don’t take more lines of credit out until your credit has repaired somewhat.