Battling with bad debt can truly be a harrowing experience. Just imagine the pressure of having to deal with constant calls from your creditors or receiving threats from collection agencies. Certainly, not knowing where to get your next payment or how to make ends meet can be very frustrating.

But does this mean you should give up on the situation? Of course, not! No matter how difficult your debt problem may seem to be, you can find a solution. This article presents some viable suggestions that can help you become debt free.

Assess the real situation. Surprisingly, many people who are stuck in debt are not even aware about the real status of their debts. Some people may think that they owe their creditors much less while others may think that they owe much more. Do you really know how much you owe your creditors?

The first step towards debt recovery is acknowledging that there is a problem. You need to know exactly where you stand. How? Get a copy of your credit report from each of the three credit bureaus. Analyze your report to see if there are errors or inaccurate charges that needs to be corrected.

If all the information in your report are correct, sum up the total amount of your debt. Also, check which of your debts incur the highest rates of interest. This way, you’ll know which accounts need your immediate attention.

Understand the root of the problem. What has led you to this dilemma in the first place? Is it overspending?; Not making your payments on time?; Owning too many credit cards?; Neglecting your bills?

Get to know the cause of the problem and be determined to make some changes. Typically, financial crisis has to do with a person’s lifestyle. How can you adjust your lifestyle to the present circumstances? How can you reduce your expenses so you can focus on debt repayment?

Be creative. You can find a hundred ways to cut unnecessary costs from your bills. For instance, you may consider giving up your personal luxuries (fashion magazine subscriptions, weekly night outs, etc) or switching to a lower cable plan or internet package, etc.

Create a sensible plan before taking action. In their desire to be free from debts, many people try to find a quick solution that barely requires hard work or effort. But acquiring the wrong solution may only do more harm than good.

For instance, some may immediately accept an offer from a debt consolidation lender or debt settlement agency. While debt consolidation or debt settlement can be a possible solution, you must remember that there are predatory lenders and scammers out there who may try to take advantage of your situation.

If you are already stuck in debt, never make decisions in a hurry. Never take action without seriously considering the consequences. If you do not know what to do or where to start, seek help from a trusted credit counselling agency- one that is recognized by government organizations in your country and one that has a good track record of service.