Debt is bad as it is but it becomes worse when your income is not enough to cover both credit payments and basic necessities. That is one of the main reasons to turn debt into a very stressful problem. The financial restriction that it brings can take its toll on anyone. If you are burdened with a lot of credit obligations, you do not have the freedom to spend on things as you wish.
In most cases, people are forced to choose between the two. Of course, when you have hungry mouths to feed, you will choose the basic necessities (bills) over your debt payments. But what will that bring to your future? You need to get rid of one of them and the obvious choice will be your debt.
Fortunately for you, there are ways for you to afford both your debts and your bills at the same time. This is known as debt relief. There are many options for you to choose from and the important consideration is your financial capabilities and what you are willing to sacrifice to achieve debt freedom.
Bankruptcy is one debt relief option but it will bring significant damage towards your credit score. It may get you out of debt faster and sometimes end up with you not paying for anything, but building your financial status afterwards may be difficult.
Debt settlement is also another option but again, your credit score will be hurt – though not as significant as bankruptcy. This program will ask you to default on your payments intentionally so that your creditor will believe that you are in a financial crisis. The aim is for them to allow you to pay only a portion of your debts and have the rest of it forgiven.
If you are concerned about your debts and you only need a small reduction on your debts, you may want to consider debt consolidation instead. The aim of this program is to lower your monthly contributions by distributing your current balance over a longer payment period. A lower interest rate will also help make this possible although it is not always a certainty.
All of these debt relief options will help you afford both debt and bill payments but just in case they are not enough, here are other things that you can do to survive your financial predicament.
First of all, you can opt to increase your income. In fact, this is another side of debt relief that is not always advertised as a “solution” on its own. Paying for credit card bills without a job is difficult and the solution to that is to get a job. There are many opportunities online if finding a corporate job is not enough or hard to accomplish. Or you can use your hobby to create products to sell. A skill can also be capitalized on through tutorials. You can find earning possibilities anywhere as long as you are resourceful.
Making smarter spending choices is also one way to help you afford both bills and debt payments. Cut back on your spending and choose only the needs over the wants. If you have to reduce your entertainment expenses, do so.
If you got yourself in debt, that is a clear sign that your lifestyle cannot be supported by your income. Live within your means and avoid taking in more debt. That will make it easier to pay for both your debts and basic necessities.