Being stuck in debt can be an overwhelming ordeal. You may think like there is nothing else you can do but to declare bankruptcy to be free from your obligations. However, you should not make a decision or take action out of haste. Instead, take a back seat and plan your attack. By making use of the right strategies, you can beat debt no matter how insurmountable it may seem.

Below are some practical suggestions that you may consider:

Face the problem. Some people may whine about how huge their problem is without really knowing the exact status of their debts. Do you know how much you owe your creditors? Have you checked your credit report to see where you really stand?

If you haven’t done so, order a copy of your report today from each of the three credit bureaus. Carefully examine your file for possible errors in your accounts. If you find unauthorized charges, do not hesitate to dispute them and request for corrections. The next step is to evaluate each of your accounts. Sum up your total debts so you can plan your next action.

Stick on your budget. The first essential step in recovering from bad debt is to control your spending, save every possible cent you can and make debt repayment your priority.

You need to make your monthly income work for you. Be creative and find ways to cut back your personal expenses. If you’re having difficulty calculating your bills, you can make use of free budget calculators that you can find from finance websites.

Create a debt repayment plan. Now that you know the reality of your debt situation, it’s time to plan your repayment strategy. What percentage of your monthly income can you set aside for debt repayment? Which of your debts incur the highest rate of interest each month? Can you consolidate or merge some of your debts into one account? If yes, how do you intend to consolidate? Do you want to take out a loan or apply for a credit card with zero interest?

Meet with your creditors. The problem may not be as bad as you may think it is. After creating your personal debt repayment plan, speak with your creditors and try to negotiate for an easier terms. Be honest and explain your present situation. Many creditors would willingly modify their conditions to help a customer in crisis rather than see them file for bankruptcy.

Avoid incurring new debts. Obviously, you are not in the position to take on more debts that can aggravate the problem. Stop using your credit cards especially on unplanned purchases. As you may already have an existing balance in your cards, adding up more debts to the pile will only maximize your limit and pull down your credit score.

Seek credit counselling from a trusted source. Trying to solve the problem on your own may be more difficult especially since you feel the pressure in your shoulders. Look for a legitimate and reputable credit counselling agency that can give you the assistance that you need.