Sometimes, things just get out of hand. You can rack up debt easily. Sometimes, it’s not even really your fault. Pressures like student loans can put you in a bad situation. But sitting and wallowing isn’t going to help anyone. You need to start doing something about it. That’s what we’re going to look at. How to get control of your finances, by any means necessary.

    Budget absolutely everything

    First, you need to look at where your money’s currently going and how you can free more of it up. You want to tackle debts with speedy efficiency, so you need more money. That’s what a good budget helps you do. It breaks your money into different categories to show you how much you should save, compared to how much you’re actually saving. We don’t recommend that anyone should completely cut out spending for their own happiness. But a budget can help you keep control of it.

    rut2Cut bad habits

    Control is necessary, after all. It’s a lack of control over bad habits that can get you into some real financial hot water. You might not even realize that you have those predilections. So get a look at some of the habits that can make it harder for you to get control of your money. Habits like putting bills on automatic, so you forget when money is going out and for what. Not taking the time to set aside an emergency kitty to deal with problems without dipping into your other finances. Find out which habits apply to you and start taking steps to correct them.

    rut3Consolidate

    If you’re dealing with a lot of debt, you need to look at more than how much you owe. You need to look at the interest rate, as well. Consolidation can be one of the most effective options for dealing with debt and controlling those interest rates. It can also tidy your debts into one repayment plan that’s easier to track. Just be careful how you consolidate. Some debts, like credit cards, have a cap on how much interest they can accrue. For low-interest repayments like that, it’s best to keep them unconsolidated.

    rut4Give yourself a new start

    Don’t despair if it seems like your finances are so out of control you can do nothing about them. There are always options. For example, if other debts on top of your student loan are proving insurmountable, there is a last option to consider. Bankruptcy. It’s a scary word, but it can be a serious option. Especially if your student loan is taking so much money from you that you can’t take care of yourself. Just be aware you’ll be taking a credit hit for some years after. Learn more about student loans and bankruptcy before making any decisions.

    The point above might seem like a drastic measure, but sometimes it’s important to be able to give yourself a clean slate. It may mean that you won’t have much luck getting a good loan for a while, but if it frees up your potential to make money, you should consider it.

    image credit 1, 2, 3, 4