Financial advice for those facing debt

Debt is stressful, it can impact all areas of your life and it often feels overwhelming. If you’ve been dealing with it, you know that it’s important not only to know what to do about the debt that you have, but also to understand how you can prevent future debt.

Below are a few different pieces of advice that may help.

1. Budget.

The biggest thing that many people skip is simply making a budget. You’ll be shocked to find out how much you “accidentally” spend on a monthly basis.

2. Cut back on what you don’t need.

There are plenty of frivolous ways that people spend money, many of which have far less expensive alternatives. For example, maybe you spend $3 per day grabbing a coffee on the way to work, when you could brew it at home for just a few cents per day. Little things add up.

3. Identify expensive debts.

How expensive your debt is depends, to a large degree, on the interest rates. It’s often wise to pick those high-interest debts to eliminate first, since they’re adding the most new debt every month.

4. Be open with your spouse.

If you’re married, don’t lie about your financial situation or try to hide the issues. Be open and transparent. Have that uncomfortable conversation. This way, you can both make changes and work together to find a solution.

Above all else, be sure you understand all of your legal options for debt relief. In some cases, this could even include bankruptcy, which can provide you with a fresh start.